Bullboard - Stock Discussion Forum Capella Minerals Ltd V.CMIL

Alternate Symbol(s): CMILF

Metals & Mining Industrial Metals & Minerals

Capella Minerals Limited is an exploration and development company. The Company is engaged in the acquisition, exploration, and development of mineral resource properties with a focus on European base and battery metals projects. Its projects include Hessjogruva-Kongensgruve-Kjoli copper-cobalt project, Lokken project, Northern Finland Copper-Gold project, Perho Lithium Pegmatite project... see more

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TSXV:CMIL - Post Discussion

Capella Minerals Ltd > news is out

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Post by knoxt on May 21, 2024 9:56am

news is out

Capella to Sell Equity Interest in Sierra Blanca to Unico Silver

PR Newswire - May 21, 2024 10:00 AM ADT

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.