Capricorn Metals (ASX:CMM) agreed with AMMM Resources to acquire the Extension Hill and Mungada tenement packages in Western Australia, for AU$1.5 million, according to a Thursday filing with the Australian bourse.

The company has paid an initial cash deposit of AU$100,000 and will pay AU$1.4 million via the issue of shares, the filing said.

It will also pay contingent deferred payments of AU$1.5 million, the filing added.

Capricorn Metals identified several drill-ready target zones for exploration within Extension Hill and Mungada, and will confirm targets for drilling in the first half of fiscal year 2027, the company said.

Shares of the company rose 2% in recent Thursday trade.