Caprice Resources Acquires Majority Stake in Bantam Project Near Luni Discovery

Caprice Resources signs a binding option deal to acquire a 90% interest in the Bantam Project in Western Australia's West Arunta region. The company will pay A$1.03 million and additional milestone payments, with a commitment to invest A$200,000 in exploration activities.

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Aqsa Younas Rana
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Caprice Resources Acquires Majority Stake in Bantam Project Near Luni Discovery

Caprice Resources Acquires Majority Stake in Bantam Project Near Luni Discovery

Caprice Resources has entered into a binding option deal to acquire a 90% interest in the Bantam Project, located in the West Arunta region of Western Australia. The project, comprising four contiguous tenements spanning 1,470km2, positions Caprice Resources alongside WA1 Resources' West Arunta Project, which boasts the significant Luni Niobium-REE discovery.

Why this matters: The acquisition of the Bantam Project could lead to significant discoveries of niobium and rare earth elements, which are crucial for the production of advancedtechnologies and renewable energy systems. As the demand for these elements continues to grow, the success of this project could have far-reaching implications for the global energy landscape.

Under the terms of the agreement with HJH Nominees, Caprice Resources will pay a non-refundable option fee of A$30,000, with a 30-day period for due diligence. Upon completion, the company will pay the vendor A$1.03 million, with additional deferred milestone payments totaling A$1.1 million. The vendor will also receive a 2% gross production royalty from any minerals extracted from the tenements.

The Bantam Project's proximity to the Luni Niobium-REE discovery is noteworthy, given WA1 Resources' market capitalization has surpassed A$1 billion (US$661.5 million). This strategic location demonstrates Caprice Resources' confidence in the potential for niobium-REE discovery in the region.

Caprice Resources is committed to investing at least A$200,000 in exploration activities on one of the tenements by 28 June 2024. To fund these efforts, the company has secured A$1.58 million through a placement that was "heavily oversubscribed". The placement will involve the issuance of 88 million shares at A$0.018 each, with the first tranche expected to commence trading on 20 May 2024.

An unincorporated joint venture will be formed between Caprice Resources and the vendor, with the vendor being free carried until a mining decision is made. This arrangement allows Caprice Resources to take the lead in exploring and developing the Bantam Project while benefiting from the vendor's local knowledge and expertise.

The acquisition of the Bantam Project marks a significant step forward for Caprice Resources in its pursuit of niobium and rare earth element discoveries in Western Australia's West Arunta region. With a strong financial position and a strategic location near the Luni discovery, the company is well-positioned to unlock the potential of this promising area and create value for its shareholders.