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Capricorn sells royalty on Energizer's Molo graphite deposit

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Capricorn sells royalty on Energizer's Molo graphite deposit

Capricorn MetalsLtd said May 11 that it started the first stage of the company's assetsale process in Madagascar with the sale of its 1.5% net smelter royalty on 's graphite deposit.

The royalty was sold to a Canadian investment group for an immediatecash payment of C$300,000. A further payment of C$1.0 million in cash will be madeonce commercial production at Molo begins.

Capricorn retains the right to receive a similar C$1.0 millionpayment from Energizer Resources when commercial production starts at the graphiteproject.