Capella to Sell Equity Interest in Sierra Blanca to Unico Silver
Capella to Sell Equity Interest in Sierra Blanca to Unico
Silver
VANCOUVER
, BC
,
May 21, 2024
/CNW/ -
Capella Minerals Ltd
(TSXV: CMIL) (OTCQB: CMILF) (FRA: N7D2)
("Capella" or the "Company") and JV partner Austral Gold Ltd (ASX: AGD) (TSXV: AGLD) ("Austral") are pleased to
announce entering in to a Share Purchase Agreement ("SPA") with Unico Silver Ltd (ASX: USL) ("Unico") through which
Unico will acquire a 100% interest in
Sierra Blanca S.A
., the Argentine subsidiary whose sole asset is the Sierra Blanca
gold-silver project in
Santa Cruz Province
. Capella and Austral currently own 45.31% and 54.69% interests, respectively,
in
Sierra Blanca S.A
.
Under the terms of the SPA,
Sierra Blanca S.A
. will be acquired by Unico (on a 100% basis) for a consideration of
5,000,000 ordinary USL shares.
Eric Roth
, Capella's President and CEO
, commented: "We are pleased to be announcing today the sale of our Sierra
Blanca epithermal gold-silver project in
Argentina
to
Unico Silver
. Unico have established a strong presence in
Santa Cruz
through their adjacent
Cerro Leon
project and have the local and technical experience required to advance Sierra Blanca.
The sale of the Sierra Blanca project is also consistent with our stated goal of divesting our non-core assets in the
Americas and focusing on our Scandinavian exploration assets."
The closing of the Sierra Blanca transaction is subject to: i) the granting of regulatory approvals from the ASX and TSXV
Exchanges (and Unico obtaining shareholder approval for the issuance of shares to Austral under ASX Listing Rule
10.11) and ii) entry in to deed of assignment in respect of an underlying NSR on the Sierra Blanca project. In conjunction
with the closing, the Company will transfer half of the consideration received from Unico to Sandstorm Gold Limited
(TSX:SSL; NYSE:SAND) ("Sandstorm") in consideration of the extinguishment of the annual maintenance payments
owing to Sandstorm in respect of the Sierra Blanca project under a share purchase agreement dated
February 19, 2018
as amended and assigned.
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 copper-gold projects in northern
Finland
&
copper-cobalt projects in
Norway
.
In northern
Finland
, the Company's portfolio consists of 5 copper-gold projects – including the priority Killero East and
Killero West projects, both of which were former
Anglo American
targets but never drill tested – in the highly-prospective
Central Lapland Greenstone Belt. Capella also retains a direct interest in the Perho lithium-REE project in south-central
Finland
.
On
April 9, 2024
, Capella announced a 90 day extension to the closing of the previously-announced sale of its high-grade
copper-cobalt assets in
Norway's
Trøndelag County (including the advanced exploration-stage Hessjøgruva project) to
private Norwegian company Polar Transition Minerals AS ("Polar", formerly NickelX AS). Polar is currently 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 revised total consideration of the transaction, payable upon
completion of the Polar IPO, is
$C 6.45 million
and includes i)
$C 3.75 million
in cash to Capella, ii)
$C 2.5 million
in Polar
shares (which Capella intends to distribute to its shareholders on a pro-rata basis) and iii) the payment of
$C 200,000
of
operating costs until the closure of the acquisition. The revised closing date is now
July 7, 2024
.
Capella also retains exposure to exploration success in Canadian precious metals projects through its JV with Agnico
Eagle Mines Ltd (TSX/NYSE: AEM) at the Domain Gold Project (
Manitoba
).
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 09:00e 21-MAY-24