Capella Minerals has finalized the divestment of its entire interest in the Savant Gold Project to Prospector Metals, marking the end of Prospector’s exploration under the previous earn-in agreement. The deal includes a cash payment of C$50,000 to Capella at closing, along with one million common shares of Prospector.
In addition, Capella will retain a 1% net smelter royalty (NSR) on any potential production from the project, allowing them to maintain a foothold in its future. This latest property acquisition agreement supersedes the previous earn-in deal and is subject to approvals from the TSX Venture Exchange.
Capella’s president and CEO, Eric Roth, stated that the sale aligns with the company’s strategy of exiting precious metals projects in the Americas to focus on Scandinavian copper, gold, and battery metal projects. While Capella has relinquished its direct interest in the Savant Gold Project, they believe in the potential for new high-grade gold discoveries on the property. Shareholders will benefit from future exploration success through the Prospector shareholding and the NSR from potential production.
Roth emphasized that the successful sale of assets in Canada and Argentina will result in a more streamlined portfolio and a clearly defined strategy for Capella moving forward. Despite divesting their interest in the Savant Gold Project, Capella remains optimistic about the property’s potential and the benefits it can provide to shareholders in the future.
