The latest property acquisition agreement supersedes the previous earn-in deal. Credit: Phawat via shutterstock.com.

Capella Minerals has finalised the divestment of its entire interest in the Savant Gold Project to Prospector Metals.

The deal concludes Prospector’s exploration under the earn-in agreement initiated in September 2020, which identified multiple high-grade gold targets.

Prospector Metals will make a cash payment of C$50,000 to Capella Minerals at closing.

Additionally, Capella will receive one million common shares of Prospector. This move allows Capella to maintain a foothold in the project’s future through a 1% net smelter royalty (NSR) on any potential production.

The latest property acquisition agreement supersedes the previous earn-in deal and is contingent upon receiving approvals from the TSX Venture Exchange.

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“Ultimately, the successful sale of our assets in Canada and Argentina will lead to Capella having a more streamlined portfolio and a more clearly-defined strategy going forward.

“Whilst we have relinquished our direct interest in the Savant Gold Project, we strongly believe in the potential for new high-grade gold discoveries on the property and Capella shareholders will retain upside to all future exploration success through both the Prospector shareholding and the NSR from potential future production.”