Capella Announces Termination of Agreement with Polar Transition for the Sale of its Central Norway Copper Assets

Rhea-AI Summary

Capella Minerals (TSXV: CMIL) (OTCQB: CMILF) has announced the termination of its asset sale agreement with Polar Transition Minerals AS for the sale of its central Norway copper assets. The agreement, initially announced on October 17, 2023, and amended on April 9, 2024, was terminated following the elapse of the July 7, 2024 long stop date. As a result, Capella regains 100% interest in its portfolio of high-grade copper-cobalt projects in the former Løkken and Røros mining districts, Trøndelag Province.

The company plans to pursue alternative strategies for advancing these projects, with a particular focus on the drill-ready targets at Åmot and Hessjøgruva. Eric Roth, Capella's President and CEO, stated that while the transaction was worth pursuing due to shared strategic vision, both companies are better served by moving forward independently at this stage.

Positive

• Capella regains 100% interest in its high-grade copper-cobalt projects in central Norway
• Company to focus on advancing drill-ready targets at Åmot and Hessjøgruva

Negative

• Termination of asset sale agreement with Polar Transition Minerals AS
• Potential delay in project development due to failed transaction

VANCOUVER, BC, July 19, 2024 /PRNewswire/ - Capella Minerals Ltd (TSXV: CMIL) (OTCQB: CMILF) (FRA: N7D2) ("Capella" or the "Company") announces that the Company and Polar Transition Minerals AS ("Polar"; formerly NickelX AS), following the elapse of the long stop date, have agreed an immediate termination of the asset sale agreement (the "Transaction") as previously announced on October 17, 2023 and subsequently amended on April 9, 2024. Under such Transaction, Polar would have acquired Capella's central Norway copper portfolio by the agreed long stop date of July 7, 2024. 

Eric Roth, Capella's President and CEO, commented: "Whilst we believed that this transaction was worth pursuing, as we share a similar strategic vision to Polar, we have decided that, at this stage, both companies are better served by terminating the asset sale agreement and moving forward independently.

Capella now regains a 100% interest in its portfolio of high-grade copper-cobalt projects in the former Løkken and Røros mining districts, Trøndelag Province, and will move forward with alternative strategies for advancing these projects with particular focus on the drill-ready targets at Åmot and Hessjøgruva".

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 the Central Lapland Greenstone Belt of 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 – which are located about 40km SW of Agnico Eagle's Kittilä Gold Mine, currently the largest gold producer in Europe.  Capella also retains a direct interest in the Perho lithium-REE project in south-central Finland.

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 and Røros. The Company's portfolio includes: i) the advanced exploration-stage Hessjøgruva copper-cobalt project and adjacent Kongensgruve and Kjøli projects in the northern Røros mining district, and ii) satellite copper-cobalt VMS targets around the past-producing Løkken copper mine, including the drill-ready Åmot target. 

Capella holds equity positions in Teako Minerals (TSXV: TMIN), Prospector Metals (TSXV: PPP), European Energy Metals (TSXV: FIN), and Unico Silver (ASX: USL) as a direct result of the recent divestiture of non-core assets. Capella also retains direct participation (29.6%) in a Joint Venture 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

FAQ

What happened to Capella Minerals' agreement with Polar Transition for the sale of its Norway copper assets?

Capella Minerals (CMILF) and Polar Transition Minerals AS agreed to terminate their asset sale agreement for Capella's central Norway copper assets on July 19, 2024, following the elapse of the July 7, 2024 long stop date.

What assets does Capella Minerals (CMILF) now control in Norway after the termination of the agreement?

After the termination of the agreement, Capella Minerals (CMILF) regained 100% interest in its portfolio of high-grade copper-cobalt projects in the former Løkken and Røros mining districts, Trøndelag Province, Norway.

What are Capella Minerals' (CMILF) plans for its Norway copper assets following the termination of the sale agreement?

Capella Minerals (CMILF) plans to pursue alternative strategies for advancing its Norway copper assets, with a particular focus on the drill-ready targets at Åmot and Hessjøgruva.