Capricorn Metals (ASX:CMM) signed a binding agreement to acquire the Mummaloo project in Western Australia from Top Iron for roughly AU$3.5 million, according to a Friday filing with the Australian bourse.

The project covers 219 square kilometers of tenure located contiguous to the north of Capricorn's Mt Gibson gold project and is considered highly prospective for gold mineralization, per the filing.

Capricorn has paid an initial cash deposit of AU$100,000. The balance will be settled via the issue of Capricorn shares to Top Iron upon completion.

The acquisition is expected to close in February, the filing said.

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