Sabre Resources (ASX:SBR) completed the sale of its Ninghan gold project tenements in Western Australia to Capricorn Metals (ASX:CMM), according to a Monday filing with the Australian bourse.

Transaction consideration comprises AU$1.5 million worth of immediately tradeable Capricorn shares and AU$100,000 cash deposit, which have both been settled.

A further payment of AU$250,000 cash or the equivalent value in Capricorn shares is payable to Sabre on May 9 or when a drilling program begins, whichever occurs earlier, the filing stated.

The deal also includes a 1% net smelter return royalty on the sale of any minerals on five of the six tenements and a 1.5% NSR royalty on E59/2402, the filing added.

Further, Capricorn agreed to pay Sabre up to AU$1.5 million in contingent milestone consideration.