Capella Announces Signing of Exploration Agreement with Leading Turkish Mining Company, Tümad Madencilik
Capella Announces Signing of Exploration
Agreement with Leading Turkish Mining
Company, Tümad Madencilik
www.capellaminerals.com
VANCOUVER, BC
,
June 2
, 2025
/CNW/ -
Capella Minerals Ltd
(TSXV: CMIL) (OTC Pink:
CMILF) (FRA: N7D2) ("Capella" or the "Company") is pleased to announce that it has signed a Non-
Binding Letter of Intent (the "LOI" or "Agreement") with leading Turkish mining company, Tümad
Madencilik Sanayi Ve Ticaret A.S. ("Tümad"), with respect to a staged earn-in proposal for the
Company's portfolio of precious and base metal projects in Scandinavia. Under the terms of the
Agreement, Tümad will have the exclusive option to earn-in to majority interests in Capella's
Norwegian copper-cobalt-zinc projects and Finnish gold-copper projects through a series of
exploration and development investments.
The current LOI is expected to be subject to a further 30 day Due Diligence period.
Tümad currently produces approximately 200,000 ounces of gold per annum from two mining
operations located in western Türkiye. This strategic partnership with Capella is expected to provide
Tümad with an excellent opportunity to expand its international footprint in to the highly prospective
Scandinavian region.
Eric Roth
, Capella's President and CEO, commented today: "I am extremely pleased to be
announcing today this strategic partnership with leading mining company Tümad. I strongly believe
that the respective strengths of the two Companies – Capella's team with its highly-successful
exploration / discovery history and operating experience both within Scandinavia and elsewhere
globally, together with Tümad's highly successful mine building and operational experience – will
combine to ensure a successful venture going forward for both parties."
Highlights
Key terms of the Capella – Tümad Agreement are as follows:
Tümad will make a cash payment to Capella of
USD 50,000
upon signing of the LOI.
Furthermore, Tümad will make cash payments to Capella of
USD 250,000
each for the
Norwegian and Finnish projects upon execution of the Definitive Agreements for the both
projects.
With respect to the Company's 100%-owned Norwegian copper-cobalt-zinc projects
(Hessjøgruva/Kongensgruve, Kjeldebotn, and Kviteseid), Tümad would be granted an earn-in on
the following terms:
Phase 1 (Earn-in to 30% shareholder of the license holder company) – Tümad will be
required to invest
USD 2,500,000
in exploration expenditures (including a minimum
8,000m
of core drilling) during the First Year after the signing of the Definitive Binding Agreement.
This investment is deemed to be the minimum investment commitment. Should Tümad then
elect not to continue on to Phase 2, Tümad's interest in the project will revert to a 1% NSR.
Phase 2 (Earn-in to 51% shareholder of the license holder company)(Optional) – Tümad
will be required to invest a further
USD 5,000,000
in exploration expenditures, which is
expected to include the completion of a further
15,000m
of infill / step-out drilling, a
Canadian NI 43-101 compliant mineral resource estimate, plus initial metallurgical and
mining studies.
Phase 3 (Earn-in to 80% shareholder of the license holder company)(Optional) – funding of
all studies required for completion of a 43-101 compliant Feasibility Study.
Subsequent to the completion of Phase 3, Capella will either be required to contribute to
future exploration and development costs on a pro-rata basis or will dilute out to a 1.5%
NSR. Tümad will hold a buy-back right on the 1.5% NSR for
USD 5,000,000
until anytime
up to the commencement of commercial production.
With respect to the Company's
Northern Finland
gold-copper projects (Killero E, Killero W,
Saattopora W, Jolhikko, and Selsunselka)(
Cullen Joint Venture
; ASX: CUL), Tümad has been
granted an earn-in on the following terms:
Phase 1 (Earn-In to 30% shareholder of the license holder company) – Tümad will be
required to invest
USD 1,250,000
in exploration expenditures (including a minimum
4,000m
of core drilling) during the First Year after the signing of the Binding Agreement. This
investment is deemed to be the minimum investment commitment. Should Tümad then elect
not to continue on to Phase 2, Tümad's interest in the project will revert to a 1% NSR.
Phase 2 (Earn-in to 51% shareholder of the license holder company)(Optional) – Tümad
will be required to invest a further
USD 2,500,000
in exploration expenditures, and which is
expected to include an additional
8,000m
of infill and step-out drilling.
Phase 3 (Earn-in to 80%*)(Optional) – funding of Feasibility-level technical studies
Subsequent to the completion of Phase 3, Capella will either be required to contribute to
future exploration and development costs on a pro-rata basis or will dilute out to a 1.5%
NSR. Tümad will hold a buy-back right on the 1.5% NSR for
USD 5,000,000
until anytime
up to the commencement of commercial production.
The Phase 1 investments indicated for both the Norwegian and Finnish projects are deemed
mandatory, with further exploration being undertaken purely at Tümad's discretion and based on
positive technical results. Should Tümad elect to withdraw from either project at the end of the First
Year (Phase I), then it shall retain a 1% NSR on the project.
During the Period starting from Phase 1 and ending upon the completion of the Phase 3 Tümad will
fund the exploration expenditures that will be outlined in the Definitive Binding Agreement, and the
Projects will be operated jointly by Tümad and Capella, through technical committee overseeing
work programs and budget allocations. Tümad will take a lead role in executing exploration
programs, while Capella will contribute local expertise and regulatory and community engagement
support.
*80% of Capella's interest in the license holder company
Private Placement
The Company put aside its previously announced non-brokered private placement of up to
15,000,000 units ("Units") at
$0.05
per Unit as a direct result of the uncertain market conditions that
prevailed during Q1, 2025. The Company did raise
$105,600
from one subscriber and will issue
2,112,000 Units upon receipt of regulatory approval.
The Company believes that now may be more fortuitous timing and will again seek to raise gross
proceeds of up to
$750,000
through the sale of Units. Each Unit shall consist of one common share
and one-half of one share purchase warrant, each whole warrant entitling the holder to acquire an
additional share at a price of
$0.10
for a period of two years from date of issuance. The Company
may close in tranches and gross proceeds of up to
$750,000
will be used for general working
capital; advancing current projects; and reviewing and researching new exploration project
opportunities.
Qualified Persons and Disclosure Statement
The technical information presented in this news release has been prepared in accordance with
Canadian regulatory requirements as set out in National Instrument 43-101 ("NI 43-101") and
approved by
Eric Roth
, the Company's President & CEO, a Director, and a Qualified Person under
NI 43-101. Mr. Roth holds a Ph.D. in Economic Geology from the University of
Western Australia
, is
a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and is a Fellow of the Society
of Economic Geologists (SEG). Mr. Roth has over 35 years of experience in international minerals
exploration and mining project evaluation.
On Behalf of the Board of Capella Minerals Ltd.
"Eric Roth"
Eric Roth
, Ph.D., FAusIMM
President & CEO
About Capella Minerals Ltd
Capella is a Canadian exploration and development company with a focus on global gold-copper
projects and is currently exploring in the Central Lapland Greenstone Belt of northern
Finland
&
copper-cobalt projects in central
Norway
.
In northern
Finland
, the Company's portfolio consists of 5 copper-gold projects including the priority
Killerö E target (a former
Anglo American
copper-gold project that was never drill tested) and the
Saattopora W target (the western extension to Outokumpu Oy's Saattopora former copper-gold
mine
2
) - all of which are located about 40km SW of Agnico Eagle's Kittilä Gold Mine
2
, currently the
largest gold producer in
Europe
.
In the Trøndelag Province of central
Norway
, the Company's focus is on the discovery of high-grade
copper-cobalt massive sulfide (VMS) deposits in the former mining districts of Løkken
2
and Røros
2
.
The Company's portfolio includes: i) a 100% interest in the advanced exploration-stage Hessjøgruva
copper-cobalt project and adjacent Kongensgruve project in the northern Røros mining district, and
ii) exposure to the discovery of new satellite copper-cobalt-zinc VMS targets around the past-
producing Løkken copper mine through a strategic partnership with Teako Minerals Corp. (CSE:
TMIN).
Capella also holds significant equity positions in Teako Minerals Corp. (CSE: TMIN) and Grit Metals
Corp. (formerly European Energy Metals Corp; TSXV: FIN) as a direct result of the recent
divestiture of non-core assets.
For additional information you are cordially invited to visit the Capella Minerals Ltd website at
www.capellaminerals.com
, or contact
Karen Davies
, VP Shareholder Relations and Corporate
Development, at Tel: +1.604.314.2662
Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities
legislation. Forward-looking information is typically identified by words such as: believe, expect,
anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature,
refer to future events. Such statements include, without limitation, statements regarding the future
results of operations, performance and achievements of Capella, including the timing, completion
of and results from the exploration and drill programs described in this release. Although the
Company believes that such statements are reasonable, it can give no assurances that such
expectations will prove to be correct. All such forward-looking information is based on certain
assumptions and analyses made by Capella in light of their experience and perception of historical
trends, current conditions and expected future developments, as well as other factors management
believes are appropriate in the circumstances. This information, however, is subject to a variety of
risks and uncertainties and other factors that could cause actual events or results to differ
materially from those projected in the forward-looking information. Important factors that could
cause actual results to differ from this forward-looking information include those described under
the heading "Risks and Uncertainties" in Capella's most recently filed MD&A. Capella does not
intend, and expressly disclaims any obligation to, update or revise the forward-looking information
contained in this news release, except as required by law. Readers are cautioned not to place
undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE
Capella Minerals Limited
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For further information:
Capella Contacts: Eric Roth, Email: [email protected]; Karen
Davies, +1.604.314.2662
CO: Capella Minerals Limited
CNW 07:00e 02-JUN-25