Capella signs earn-in for Solana Cu-Au project

Executive Summary

• Capella Minerals Ltd. has signed a binding letter of intent (LOI) to earn-in on the Solana iron-oxide-copper-gold (IOCG) project in southern Spain from Verde Minerals Ltd.
• The transaction allows Capella to acquire up to a 75% interest in the district-scale project through staged exploration commitments and a prefeasibility study over 72 months.
• The project features a 35+ km belt of high-grade copper-gold veins and buried IOCG targets, with initial drill target definition expected in early 2026 and first-pass drilling in late 2026.

Key Details

• Transaction Structure: Binding LOI for an earn-in agreement on the Solana IOCG project from Verde Minerals Ltd. (via subsidiary Cobre y Oro Andaluz).
• Earn-in Stages:
  • Phase I (30% Interest): Earned by completing minimum exploration commitments on granted permits within 12 months. Minimum spend on Filabres 1 permit for 2026 is €290,000.
  • Phase II (51% Interest): Earned by completing minimum exploration expenditure on each granted permit within 24 months of grant dates.
  • Phase III (75% Interest): Earned by completing minimum exploration expenditure and a prefeasibility study within 72 months of grant dates.
• Vendor Options: After reaching 75%, Verde may maintain a 25% interest by funding pro-rata expenditures or dilute to a 2% Net Smelter Return (NSR) via a standard industry dilution formula.
• Financial Consideration:
  • €115,000 payable to Verde upon signing the LOI.
  • Annual payments of €50,000 to Verde upon the earlier of: (i) relinquishment of all properties, or (ii) completion of Phase III items.
  • Refundable €70,000 environmental bond to be lodged with the Andalucia government for the Filabres 1 permit.
• Project Assets:
  • One granted investigation permit (Filabres 1; 14.6 sq km).
  • Two exploration permit applications (Filabres PE 1 and 2; 212 sq km total).
  • Located 80 km NW of Almeria and 20 km E of the Alquife iron mine.
  • District-scale project (35+ km length) including former-producing Cerro de Gallo, Solana, and Conde Xiquena operations.
• Geology & Exploration History:
  • North-northwest-trending haematite-rich copper-gold veins hosted in proterozoic meta-sedimentary rocks with underlying felsic intrusions.
  • Cumulative strike extent of >50 km mapped.
  • Previous work (2010-2013): 1,775 line km heliborne survey, stream sediment sampling, 1,300 rock chip samples, and 3 short diamond drill holes.
  • Planned 2026 geophysical surveys include magnetotelluric (AMT) and gravity surveys to identify buried IOCG sources.
• Timeline: Exploration activities commence immediately; initial drill target definition in early 2026; first-pass diamond drilling in late 2026.
• Management: John Gray designated as project manager.
• Regulatory Status: LOI subject to acceptance by the TSX Venture Exchange.

Notable Quotes

• "I am extremely pleased to be announcing the incorporation of the Solana iron-oxide copper-gold project in to Capella's exploration and development portfolio. The Solana project represents a new geological target type for southern Spain... the Solana IOCG project represents a new concept for potential copper-gold discoveries." — Eric Roth, President and CEO