Caprice eyes off Bantam project

Shares in West Perth-based Caprice Resources rose by 50 per cent on Thursday afternoon, following news that the company plans to acquire a 90 per cent stake in the Bantam project, located in the West Arunta region of Western Australia.

As of 12.25pm WST, Caprice was trading at 3 cents per share, its highest price since January 23.

Bantam covers 1470 square kilometres and is comprised of four contiguous tenements. It also shares a 30km border with WA1 Resources’ West Arunta project – a site which has substantially increased WA1's market cap.

Caprice told the market it had entered into a binding option agreement with HJH Nominees to secure its stake in Bantam, and as such, will pay a non-refundable $30,000 option fee.

The West Perth-based exploration company has also agreed to a series of consolidation-based conditions with HJH – including a $1.03 million cash payment, along with three milestone cash payments totaling $1.1 million following the granting of specific exploration licences.

HJH will be granted a 2 per cent gross production royalty on the sale of any minerals mined from the four tenements.

Should they wish to partially or fully divest their royalty, Caprice would have a right of first refusal to acquire it from HJH, or buy out 25 per cent of their 2 per cent royalty stake.

Glenn Whiddon-chaired Caprice also provided an update regarding a joint venture between both parties at Bantam, along with its plans to tap investors for $1.58 million.

Once the option agreement has been finalised, Caprice and HJH will form an unincorporated joint venture which will be subject to a free carry period.

Until a decision is made to either develop or mine a deposit across one of the four tenements, Caprice must solely fund all activities within the venture – and spend at least $200,000 towards exploration licence E80/5873 by June 24.

Additionally, and not contingent on the Bantam acquisition proceeding, Caprice will raise approximately $1.58 million, courtesy of a two-tranche placement.

CPS Capital was appointed lead manager, corporate advisor and broker of the placement.

Caprice said it would issue around 55.85 million shares in the initial tranche at $0.018 cents per share.

Subject to shareholder approval, the company will then issue approximately 32.14 million shares in the secondary tranche. 

A 1 for 4 free attaching option, exercisable at 3 cents per share on or before January 31 2027, will also be offered.

Mr Whiddon, who was appointed in February this year, told the market that Caprice was keen to generate value from exploration at Bantam.

“A land package of this size with very little exploration work to date is an exciting prospect for Caprice which aims to replicate the success of its peers through targeted, strategic exploration,” he said.

“We look forward to progressing due diligence with a view to expediting the process and commencing exploration activities in earnest.”

During its first half of the 2024 financial year, Caprice posted a net loss after tax of $430,695 - down from $655,054 during the prior corresponding period.