Capella Minerals Completes Divestment of Savant Gold Project to Prospector Metals

Capella Minerals, a prominent player in the mining sector, has finalized the divestment of its entire interest in the Savant Gold Project to Prospector Metals.

Savant Gold Project

Capella Minerals, a prominent player in the mining sector, has finalized the divestment of its entire interest in the Savant Gold Project to Prospector Metals. This transaction marks the culmination of Prospector’s exploration efforts under the earn-in agreement initiated in September 2020. The deal, which includes a cash payment and common shares, allows Capella to maintain involvement in the project’s future while aligning with the company’s strategic focus on Scandinavian copper, gold, and battery metal projects.

Conclusion of Exploration Under Earn-In Agreement

Prospector Metals’ exploration activities at the Savant Gold Project, initiated through an earn-in agreement with Capella Minerals in September 2020, have led to the identification of multiple high-grade gold targets. The completion of this exploration phase has paved the way for the finalization of the divestment deal, enabling Prospector to assume full ownership of the project.

Terms of the Divestment Deal

As part of the divestment agreement, Prospector Metals will make a cash payment of C$50,000 to Capella Minerals upon closing. Additionally, Capella will receive one million common shares of Prospector, providing the company with a stake in Prospector’s future endeavors. Importantly, Capella retains a 1% net smelter royalty (NSR) on any potential production from the Savant Gold Project, ensuring ongoing benefits from its previous involvement in the project.

Regulatory Approval Required

The finalization of the property acquisition agreement between Capella Minerals and Prospector Metals is contingent upon receiving approvals from the TSX Venture Exchange. Once regulatory clearance is obtained, the transaction will be officially completed, allowing Prospector to assume full ownership and operational control of the Savant Gold Project.

Strategic Focus on Scandinavian Projects

Capella Minerals’ decision to divest its interest in the Savant Gold Project aligns with its strategic focus on Scandinavian copper, gold, and battery metal projects. Eric Roth, President, and CEO of Capella Minerals, emphasized the company’s commitment to executing its flagged strategy of exiting precious metals projects in the Americas. The divestment of the Savant Gold Project allows Capella to reallocate resources and concentrate its efforts on advancing its core projects in Scandinavia.

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Future Outlook and Strategic Alignment

With the completion of the divestment deal, Capella Minerals looks ahead to leveraging its expertise and resources in Scandinavian projects while maintaining a vested interest in the success of the Savant Gold Project through the NSR arrangement. Meanwhile, Prospector Metals aims to capitalize on the high-grade gold targets identified during its exploration phase and unlock the full potential of the Savant Gold Project under its ownership.

The divestment of the Savant Gold Project marks a significant milestone for Capella Minerals and Prospector Metals, signaling a strategic realignment of their respective priorities. As Prospector assumes full ownership of the project, Capella shifts its focus towards advancing its Scandinavian projects while retaining a stake in the future success of the Savant Gold Project through a net smelter royalty. With regulatory approvals pending, both companies look forward to unlocking value and driving growth in their respective portfolios.

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