Closing of Sale of Minera Mariana Argentina S.A.
VANCOUVER, BC, Jan. 25, 2021 /PRNewswire/ - Capella Minerals Ltd. (TSXV: CMIL) (FRA: N7D2) (the "Company" or "Capella") is pleased to advise that, further to the Company's news release of January 7, 2021, the Company has now completed and closed the sale of its 100% interest in its Argentine subsidiary, Minera Mariana Argentina S.A. ("Minera Mariana"), to Cerrado Gold Inc. ("Cerrado") (the "Transaction"). Minera Mariana is the owner of the Las Calandrias and Los Cisnes gold-silver projects, in addition to a portfolio of exploration concessions located in the Eastern Deseado Massif, Santa Cruz Province, southern Argentina. The terms of the Transaction were announced in the Company's News Release dated October 28, 2020.
Under the terms of the Transaction, Capella received 1,125,000 Cerrado shares on closing. The Company transferred 562,500 of the Cerrado shares to Sandstorm Gold Limited (TSX:SSL; NYSE:SAND)("Sandstorm") in consideration of the extinguishment of the annual maintenance payments of the Company owing to Sandstorm in respect of the Las Calandrias and Los Cisnes projects under a share purchase agreement dated February 19, 2018 as amended and assigned.
Eric Roth, Capella's President and CEO, commented today: "With the closing of the sale of Minera Mariana S.A., Capella has now become a shareholder of Cerrado and holds indirect exposure to new exploration success on both its Santa Cruz (Minera Don Nicolas gold-silver mine and Las Calandrias gold project) and Brazilian (Monte do Carmo) gold projects. The Cerrado shareholding also complements the Company's Ethos Gold Corp. shareholding, which was acquired through the Savant Lake earn-in agreement and which also provides Capella shareholders with exposure to growth outside of discovery success on its own high-quality portfolio of gold and copper projects."
On Behalf of the Board of Capella Minerals Ltd.
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 high-grade gold and copper deposits. The Company's precious metals focus is on the discovery of high-grade gold deposits on its Southern Gold Line Project in Sweden, in addition to its active Canadian Joint Ventures with Ethos Gold Corp. at Savant Lake (Ontario) and Yamana Gold Inc. at Domain (Manitoba). The Company also retains a residual interest (subject to an option to purchase agreement with Austral Gold Ltd) in the Sierra Blanca gold-silver epithermal project in Santa Cruz, Argentina.
The Company's copper focus lies in the discovery of high-grade massive sulfide (VMS) deposits within district-scale land positions around the past-producing Løkken and Kjøli copper mines in central Norway. Field activities are ongoing on all projects, with the primary focus being to advance priority targets through the permitting process and onwards to drilling and discovery.
Cautionary Notes and Forward-looking Statements
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.
SOURCE Capella Minerals Limited
Company Codes: Frankfurt:N7D2, TorontoVE:CMIL
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