Capricorn Metals Ltd (ASX: CMM) shares are pushing higher on Thursday morning.
At the time of writing, the ASX 200 gold stock is up 4% to $7.76
Why is this ASX 200 gold stock rising?
As well as getting a boost from a stronger gold price, investors have been buying the company's shares following the release of an announcement.
According to the release, Capricorn Metals has bolstered its exploration potential with the acquisition of the highly prospective Kings Find Project in Western Australia.
The release notes that this strategic move expands the company's footprint in the Murchison region and could unlock significant new gold resources.
A strategic acquisition
The ASX 200 gold stock has entered into a binding agreement with Serena Minerals to acquire the Kings Find Project. It spans 54 square kilometres and is contiguous to the company's existing Mt Gibson Gold Project (MGGP) tenure.
The project is located approximately 325 kilometres north-northeast of Perth and lies within the Yalgoo-Singleton Greenstone Belt, which is an area renowned for significant mineral discoveries.
The company will pay a modest $1.5 million for the project, consisting of an initial $100,000 cash deposit, with the remainder settled in Capricorn shares. Additionally, Serena Minerals will receive a 1% net smelter royalty on any future mineral sales from the project.
High-potential gold targets
Management advised that it has already identified four priority exploration targets within the Kings Find Project. The highest priority zone is located just 35 kilometres north-northeast of the company's existing Mt Gibson resources.
The good news is that this geological setting is believed to be highly prospective for gold mineralisation, with historic workings and multiple settings conducive to economic gold deposits.
Historically, gold exploration in this area has been limited to early-stage activities, mostly during the mid-1990s. However, both historical and recent assessments indicate that Kings Find has the potential to support new near-surface satellite resources and host significant gold discoveries.
Commenting on the news, the ASX 200 gold stock's executive chair, Mark Clark, said:
The acquisition of the Kings Find Project continues the expansion of Capricorn's Mt Gibson exploration footprint and adds highly prospective targets very close to the Company's current Mt Gibson resources.
This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation. We look forward to commencing active exploration on the project in 2025.
Capricorn Metals shares are up 55% over the past 12 months.
