Capricorn Metals (ASX:CMM) agreed to acquire the Sylvania project tenements located next to its Karlawinda gold project in Western Australia from Latitude 66 (ASX:LAT) for AU$1.5 million, according to a Monday filing with the Australian bourse.

The consideration for the transaction involves the issue of Capricorn shares to Latitude upon completion, including a 1% net smelter royalty for all precious minerals and a 1.5% royalty for non-precious minerals from the Sylvania Project area, and contingent deferred payments on the achievement of project milestones, the filing said.

The acquisition is anticipated to be completed this month, according to the filing.

Capricorn Metals shares rose 1% in morning trade Monday.

Price (AUD): $6.93, Change: $+0.07, Percent Change: +1.02%