Capella Sells Savant Gold Project to Prospector Metals
Capella Sells Savant Gold Project to Prospector
Metals
VANCOUVER, BC
,
April 4, 2024
/CNW/ -
Capella Minerals Ltd
(TSXV: CMIL) (OTCQB: CMILF) (FRA: N7D2)
("Capella" or the "Company") is pleased to announce that it has entered in to a Property Acquisition Agreement with
Prospector Metals Corp. (TSXV: PPP) ("Prospector") through which Prospector will acquire a 100% interest in the
Savant Gold Project in
Ontario, Canada
. Prospector has been exploring the Savant Gold Project through an Earn-In
Agreement announced in September, 2020, and has defined a number of high-grade gold targets from work
conducted within both the extensive Iron Formation sequences (e.g. the Snowbird, Horseshoe targets) and the
Wiggle Deformation Zone (see Company News Release dated
June 28, 2022
).
Terms of the Property Acquisition Agreement
Prospector will acquire a 100% interest in the Savant Gold Project from Capella in accordance with the following
terms:
1
.
Prospector to make a cash payment to Capella of
CAD 50,000
on closing;
2
.
Prospector to issue Capella 1,000,000 common shares (with a standard regulatory hold period of 4 months)
upon closing; and,
3
.
Capella to retain a 1% Net Smelter Royalty ("NSR") on any potential future production from the property (with
0.5% being purchasable at any time for
CAD 1,000,000
).
The Property Acquisition Agreement replaces the existing Earn-In Agreement in its entirety, and closing will be
subject to TSX Venture Exchange (and other regulatory) approvals being obtained.
Eric Roth
, Capella's President and CEO
, commented: "The sale of the Savant Gold Project to our Joint Venture
partner Prospector is consistent with our flagged strategy of exiting our precious metals projects in the Americas
and focusing on our Scandinavian copper, gold, and battery metal projects. Ultimately, the successful sale of our
assets in
Canada
and
Argentina
will lead to Capella having a more streamlined portfolio and a more clearly-defined
strategy going forward.
Whilst we have relinquished our direct interest in the Savant Gold Project, we strongly believe in the potential for
new high-grade gold discoveries on the property and Capella shareholders will retain upside to all future exploration
success through both the Prospector shareholding and the NSR from potential future production. I also look forward
to keeping the market updated on our divestiture efforts at our
Sierra Blanca
(
Argentina
) and Domain (
Manitoba
)
projects".
Qualified Persons and Disclosure Statement
The technical information in this news release relating to the Savant Gold Project has been prepared in accordance
with Canadian regulatory requirements set out in 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 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 engaged in the acquisition, exploration, and development of quality mineral resource properties in
favourable jurisdictions with a focus on European base and battery metals projects.
On
October 17, 2023
, the Company entered in to a binding asset sale agreement with NickelX, a private
Norwegian mining company, through which it will divest its 100% interests in the Hessjøgruva, Kjøli, and Lokken
projects copper-zinc-cobalt projects in Trøndelag, central
Norway
. NickelX currently holds 100% interests in four
nickel exploration projects in northern
Norway
and is in the process of undertaking an Initial Public Offering ("IPO")
on
Oslo's
Euronext Growth Exchange with the objective of becoming
Norway's
leading independent battery metals
company. The transaction proceeds, payable upon completion of the NickelX IPO, include a combination of cash
and NickelX shares, which Capella intends to distribute to its shareholders on a pro-rata basis. The Long-Stop Date
for the current agreement is
April 7, 2024
.
The Company continues to explore the Northern Finland Gold-Copper project in the Central Lapland Greenstone
Belt, together with JV partner Cullen Resources Ltd (ASX: CUL). A total of six exploration permits have now been
approved, including the priority Killero East Cu-Au target. In central
Finland
, the Company´s focus is on the
discovery of lithium and rare-earth element deposits at both its Perho reservation, in addition to an extensive
package of properties in the broader Keliber district through a JV with European Energy Metals Corp (formerly Hilo
Mining)(TSXV: FIN).
Capella also retains exposure to exploration success in precious metals projects through its Joint Venture with
Agnico Eagle Mines Ltd (formerly Yamana Gold Inc.)(TSX/NYSE: AEM) at the Domain Gold Project,
Manitoba
(Capella 29.6% interest). The Company also retains a 49% interest in the Sierra Blanca Gold-Silver Project in
Santa Cruz
,
Argentina
, which is currently being explored by Austral Gold Ltd (TSXV: AGLD; ASX: AGD).
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.
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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 04-APR-24