VANCOUVER, BC , May 21, 2024
/PRNewswire/ - 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
