Shareholders approve Malagasy's change of pace

PERTH (miningweekly.com) – ASX-listed Malagasy Minerals would fast-track its plans to become a Western Australian gold producer, after shareholders approved the acquisition of the Karlawinda project.

Malagasy previously agreed to acquire unlisted Greenmount Resources, which owns the Karlawinda project, for 171.6-million shares in Malagasy, amounting to a 50% interest in the company’s issued capital.

Following the transaction, Malagasy would move to change its name to Capricorn Metals.

Malagasy on Thursday said that shareholders had also approved a A$1.5-million share placement, which would see gold miner Regis Resources emerge with a 9.9% stake in Capricorn. Strategic investor Centerpeak Resources would also emerge with a 19% stake in Capricorn following the transaction.

The funds raised would allow Capricorn to immediately start a 10 000 m in-fill drilling programme at the Karlawinda project, designed to grow the current mineral resource within the flagship Bibra deposit. The deposit is currently estimated to host 18-million tonnes, grading 1.1 g/t gold for 650 800 oz.

Malagasy MD Peter Thompson said the focus of the drilling would be to in-fill two key areas within the openpit design to increase the resource inventory, while also targeting the potential to increase the resource in the down-plunge position.

“Our immediate focus is to complete this drilling as the foundation for a revised resource estimate and scoping study, which we are aiming to complete by the middle of this year.

“This should give investors a much clearer idea of the significant economic potential of this deposit, which represents a near-term production and cash-flow opportunity within this underexplored and high-potential gold belt.”