Capella Provides Update on Central Finland Lithium Project

Rhea-AI Summary

Capella Minerals Ltd (CMIL) notes European Energy Metals Corp's completion of CAD 1 million in exploration expenditures on the Central Finland Lithium Project, confirming its earn-in to an initial 51% interest. European Energy's field teams discovered high-grade lithium prospects, with plans for scout drilling and further exploration. The President & CEO, Eric Roth, expressed satisfaction with the progress made.

Geologist

The completion of CAD 1 million in exploration expenditures by European Energy Metals Corp. on the Central Finland Lithium Project represents a significant milestone in the project's development. The discovery of high-grade lithium prospects is particularly noteworthy given the current global demand for lithium, which is driven by the burgeoning electric vehicle (EV) market and energy storage solutions. The geological findings, including spodumene-bearing boulder trains, suggest the potential for a commercially viable lithium deposit.

From a geological perspective, the presence of spodumene, a lithium aluminium inosilicate mineral, is a positive indicator of lithium grades. Spodumene is one of the most important lithium ore minerals due to its high lithium content and its occurrence in pegmatites, which can often be mined economically. The application for Exploration Licenses covering 4,550 hectares for scout drilling is a strategic move to delineate the extent and grade of the mineralization. The data collected from rock chip grab samples, which are preliminary surface samples, will guide further exploration and drilling programs.

Market Analyst

The strategic implications of European Energy Metals Corp.'s investment and subsequent discovery in the lithium sector cannot be overstated. Lithium is a critical component in the manufacture of lithium-ion batteries, which are essential for a wide range of technologies, including EVs and renewable energy storage systems. As countries and corporations continue to invest in green technologies, the demand for lithium is expected to rise significantly. This puts companies like Capella Minerals Ltd. and European Energy Metals Corp. in a favorable position within the market.

The potential earn-in of a 51% interest by European Energy through the payment of CAD 100,000 and 400,000 FIN common shares to Capella indicates a strong partnership and investment confidence. It is also indicative of European Energy's commitment to the project and its future prospects. The market will likely respond to these developments by closely monitoring the progress of the exploration and the impact on Capella's stock valuation, given the high stakes involved in lithium mining ventures.

Financial Analyst

The financial arrangement between Capella Minerals Ltd. and European Energy Metals Corp. reflects a common practice in the mining industry where joint ventures and earn-in agreements are used to mitigate risk and finance exploration. The CAD 1 million expenditure on exploration by European Energy is a testament to the project's perceived potential and European Energy's commitment to earn a majority stake. The additional payment of CAD 100,000 and 400,000 FIN common shares upon completion of the earn-in further aligns the interests of both companies.

Investors should consider the long-term implications of these developments. The exploration phase in mining is capital-intensive with no immediate revenue. However, successful exploration can lead to significant future cash flows once the project reaches the production stage. It is important to note that mining stocks are often volatile and influenced by commodity prices, regulatory issues and operational risks. The technical report prepared in accordance with NI 43-101 and approved by a qualified person adds credibility to the project and is an essential document for investors assessing the project's viability and risk.

VANCOUVER, BC, Jan. 10, 2024 /PRNewswire/ - Capella Minerals Ltd (TSXV: CMIL) (OTCQB: CMILF) (FRA: N7D2) ("Capella" or the "Company") notes today's News Release from Joint Venture partner European Energy Metals Corp. (TSX.V: FIN)("European Energy") in which it confirms that it has completed CAD 1 million in exploration expenditures on the Central Finland Lithium Project (the "Project"), being a key requirement for earning-in to an initial 51% interest in the Project as per the original Earn-In Agreement (see Company News Release dated March 20, 2023). European Energy's field teams completed extensive summer/autumn 2023 sampling and mapping programs which included the collection of some 1,100 rock chip grab samples and have resulted in the discovery of several high-grade lithium prospects which are now being permitted for drilling. European Energy may formally complete its 51% earn-in to the Project through the payment of CAD 100,000 in cash and 400,000 FIN common shares to Capella.

European Energy's News Release is available at: https://europeanenergymetals.com/news/news-2024.html

Eric Roth, Capella´s President and CEO commented: "I am pleased to be reporting today on the progress that European Energy has made on advancing the Central Finland Lithium Project. Highlights of the exploration activities to date include the discovery of high-grade spodumene-bearing boulder trains within the northernmost Nabba reservation (see European Energy News Release dated December 7, 2023), with two Exploration Licences (EL's) covering 4,550 hectares having now been applied for in order to allow initial scout drilling. A further update on the timing and details of the next phase of exploration is expected to be provided upon receipt of the Exploration Licenses".

Qualified Persons and Disclosure Statement

The technical information in this news release relating to the Central Finland Lithium 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 (namely Hamn, Palfjellet, Birgivi, and Envold) 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 total consideration of the transaction to Capella, payable upon completion of the NickelX IPO, is CAD 7 million and includes i) CAD 5 million in cash and ii) CAD 2 million in NickelX shares, which Capella intends to distribute to its shareholders on a pro-rata basis. The acquisition is currently expected to close in March, 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 active Canadian Joint Ventures with Prospector Metals Corp. (TSXV: PPP) at Savant (Ontario) and Agnico Eagle Mines Ltd (formerly Yamana Gold Inc.)(TSX/NYSE: AEM) at Domain (Manitoba). The Company also holds a 49% interest in the Sierra Blanca low sulfidation 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

FAQ

What is the latest update from Capella Minerals Ltd (CMIL)?

Capella Minerals Ltd (CMIL) notes European Energy Metals Corp's completion of CAD 1 million in exploration expenditures on the Central Finland Lithium Project, confirming its earn-in to an initial 51% interest.

What project is European Energy Metals Corp working on with Capella Minerals Ltd (CMIL)?

European Energy Metals Corp is working on the Central Finland Lithium Project with Capella Minerals Ltd (CMIL).

Who is the President & CEO of Capella Minerals Ltd (CMIL)?

The President & CEO of Capella Minerals Ltd (CMIL) is Eric Roth.

What did Eric Roth, President & CEO of Capella Minerals Ltd (CMIL), comment on?

Eric Roth expressed satisfaction with the progress made by European Energy Metals Corp on advancing the Central Finland Lithium Project.

What did European Energy Metals Corp discover in their exploration activities?

European Energy Metals Corp's field teams discovered high-grade lithium prospects during their exploration activities.

What is the next phase of exploration for the Central Finland Lithium Project?

The next phase of exploration for the Central Finland Lithium Project involves scout drilling and further exploration.

Who approved the technical information in the news release?

The technical information in the news release was approved by Eric Roth, the President & CEO of Capella Minerals Ltd (CMIL), and a Qualified Person under NI 43-101.

What are the qualifications of Eric Roth, the President & CEO of Capella Minerals Ltd (CMIL)?

Eric 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).