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European Energy Metals to Acquire 100% of Its Current Finnish Pegmatite Project and Provides Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - April 5, 2024) - European Energy Metals (TSXV: FIN...
About this update from Capella Minerals Limited
[{"type":"text","content":"European Energy Metals to Acquire 100% of Its Current Finnish Pegmatite Project and Provides Corporate UpdateVancouver, British Columbia--(Newsfile Corp. - April 5, 2024) - European Energy Metals (TSXV: FIN) (FSE: W28) (\"European Energy Metals\" or the \"Company\") is pleased to announce that it has entered into an amended agreement (the \"Purchase Agreement\") with Capella Minerals Ltd. (TSXV: CMIL) (\"Capella\") to now acquire a 100% interest in the lithium Finnish Pegmatite Project (the \"Project\"). Whereas the Project was currently subject to a two stage 51/80% earn-in agreement (the \"Earn-In Agreement\") between the Company and Capella, the Purchase Agreement replaces the Earn-In Agreement in its entirety, and, upon completion of the transaction, the Company will hold a 100% interest in the project with no further commitments due to Capella.Under the terms of the Purchase Agreement, upon closing, the Company has agreed to pay Capella $250,000 in cash and issue 1,100,000 common shares of the Company (the \"Consideration Shares\"). Capella will also receive a 2% net smelter royalty on the Project, half of which may be repurchased by the Company at any time in exchange for the payment of 1,000,000 Euro. The Consideration Shares will be subject to a statutory four month hold period as well as contractual restrictions on resale. Completion of the transaction remains subject to the approval of the TSX Venture Exchange.Jeremy Poirier, the Company's Chief Executive Officer, commented, \"We are very pleased to obtain 100% ownership and control of the project. We believe this will provide a faster and clearer pathway to advance our exploration efforts on the ground and unlock the project's potential. It provides the company with further financial flexibility and eliminates the remaining work commitment and allows the company to save on both cash and share payments from the existing earn in.\" The Project covers approximately 2,500 km2 within geological terrane that hosts numerous spodumene pegmatite prospects and deposits and is at the center of the development of a 700 million Euro hard rock lithium supply chain complex by Keliber Oy and its parent Sibanye-Stillwater Inc. The company's recently granted Nabba Exploration Licences occur less than 10 km from Keliber's Spodumene Concentrator Plant. The 2023 inaugural exploration seas...