Capricorn Metals (ASX:CMM) closed out all of its remaining 55,000 ounces of gold forward sale hedge contracts with settlement via a bilateral transaction to issue Capricorn shares to Macquarie Bank, part of Macquarie Group (ASX:MQG), its hedging and debt financier, according to a Tuesday Australian bourse filing.

The company also purchased gold put options covering 50% of the volume and the same maturity as the closed hedge contracts as part of the closure to mitigate the downside risk.

The put options give the firm the right to sell 50% of the previously hedged ounces at AU$4,500 per ounce.

The cost of the closure, purchase of put options, and transaction costs came in at AU$147 million, AU$7 million of which was funded via existing cash holdings. The balance was paid via the issuance of around 17.7 million new fully paid ordinary shares to Macquarie Bank at AU$7.90 per new share.

Capricorn Metals' shares fell past 4% in recent trading on Wednesday, while Macquarie Group's shares were down almost 1%.