Capricorn Metals (ASX:CMM) has entered into a binding agreement with Latitude 66 to acquire the Piastri project tenement package, located in the Mid-West region of Western Australia, in a move that consolidates ground adjoining the company's existing Golden Range tenure.

The Piastri project is situated contiguous to Capricorn's existing Golden Range tenure and is considered highly prospective for gold and antimony mineralisation. Antimony has drawn increased attention as a critical mineral, with supply tightness intensifying after China, the world's largest producer, imposed export restrictions on the metal in 2024. Capricorn has already identified several target zones for exploration within the project area.

Under the terms of the agreement, the transaction consideration is $1.5 million, which Capricorn will settle through the issuance of fully paid ordinary shares to Latitude 66 upon completion.

The project is located approximately 200 metres east of mining infrastructure associated with the Ricciardo mineral resource, which comprises 24.5 million tonnes (Mt) at 2.5 grams per tonne (g/t) silver equivalent for 1.96 million ounces of silver equivalent.

Situated within the north-south trending Yalgoo-Singleton Greenstone Belt, a geological structure known for hosting Archaean-age gold and base metal deposits across the Mid-West and Murchison regions, the project tenure covers a granted exploration licence of approximately 15.2 square kilometres of largely untested strike, directly contiguous to Capricorn's existing holdings. The proximity to Capricorn's Ricciardo infrastructure means any future discovery could potentially leverage nearby processing and logistics capacity rather than requiring standalone development.

Limited historic exploration has been carried out at Piastri, with only shallow drilling completed across parts of the strike. Capricorn told shareholders it intends to adopt a focused approach to fully assess and capitalise on the resource potential of the area. Planned work programmes will commence with geological and regolith mapping, followed by geochemical sampling and targeted drilling.

Latitude 66 Managing Director Grant Coyle said the transaction would provide non-dilutive liquidity, enabling the company to concentrate on the continued development of its Finnish projects, particularly ongoing studies and exploration activities at the KSB project, as well as advancing the Laverton project in Western Australia.

"With its nearby Ricciardo development, Capricorn Metals is the natural and logical buyer for the Piastri project," Mr Coyle said.

"We are pleased to be realising non-dilutive latent value for our shareholders from this non-core asset through the consideration of $1.5 million in Capricorn shares, giving us upside exposure to a premier Australian gold developer."

"This sale is in line with our strategic objectives, and we continue to review opportunities to unlock and monetise further value from our other non-core assets across the portfolio," he added.

For Capricorn, the acquisition represents a low-cost extension of its exploration footprint in a belt where it already holds a defined resource base and operating infrastructure, while for Latitude 66 it allows the company to redirect capital toward its core Finnish battery metals portfolio. Capricorn Metals shares closed down 1.62% at $15.80, with a market capitalisation of $7.336 billion.