Caprice Resources Expands West Arunta Footprint with Rio Tinto Deal
More than a month after appointing Luke Cox as its new CEO, Caprice Resources has strengthened its position in the West Arunta region by acquiring a new tenement. The West Perth-based exploration company, which has a market capitalization of $7.26 million, announced on Tuesday that it has entered into a binding agreement to purchase a tenement adjacent to its existing Bantam project from Rio Tinto Exploration, a subsidiary of Rio Tinto, for $375,000.
The payment for the tenement will be made within 20 business days following the transfer of the tenement to Caprice. As part of the agreement, Rio Tinto Exploration retains the option to buy back a 30% interest in the tenement. This right can be exercised either after Caprice completes 3,000 meters of reverse circulation and/or diamond drilling or once a JORC-compliant mineral resource estimate has been established.
If Rio Tinto Exploration chooses to exercise its buyback option, a 70-30 joint venture will be formed between Caprice and Rio Tinto Exploration. Should Rio Tinto decide not to exercise this right, Caprice will pay a 2% net smelter royalty on any production from the site.
Commenting on the agreement, CEO Luke Cox expressed appreciation for the collaborative approach taken by Rio Tinto Exploration. "We’re grateful to Rio Tinto Exploration for selecting Caprice and their collaborative approach in reaching a binding agreement, through which we hope to deliver exploration success to the benefit of all parties," said Cox. He also emphasized Caprice's commitment to building a strong relationship with the local Kiwirrkurra community and exploring the Tali country of the Gibson Desert.
Cox was appointed CEO of Caprice on July 22, following his resignation from Green Technology Metals (GTM) in June. During his tenure at GTM, Cox led the company through its initial public offering in 2021 and noted the importance of transitioning leadership as GTM approached key milestones in its Seymour project in Ontario, Canada.
