Capella Minerals is enhancing its presence in the European base metals and gold sectors through a binding Letter of Intent (LOI) with Verde Minerals Ltd. This agreement focuses on the Solana Iron Oxide Copper-Gold (IOCG) Project located in southern Spain, marking a strategic move for Capella as it ventures beyond its existing Northern European assets. The Solana project is situated in a historically underexplored district, which presents significant discovery potential for copper and gold.
Geological Importance and Project Scope
The Solana project, located approximately 80 km northwest of Almería and 20 km east of the historic Alquife iron mine, encompasses a substantial corridor of copper-gold mineralization that extends over 35 km, with a total strike length exceeding 50 km. Notable geological features include:
Previously producing high-grade copper-gold veins at Cerro de Gallo and Solana, along with the Conde Xiquena haematite mine known for its copper richness. The mineralization is characterized by NNW-trending haematite-rich veins hosted in Proterozoic meta-sedimentary rocks, underpinned by felsic intrusives. This project represents a strategic shift towards IOCG-style systems, differing from Capella’s earlier focus on the Iberian Pyrite Belt, and taps into a geological regime that has seen limited modern exploration since the 1920s.
Structure of the Earn-In Agreement
Through the LOI, Capella has the opportunity to earn up to a 75% interest in the Solana project from Verde’s Spanish subsidiary, Cobre y Oro Andaluz (CyOA), via a structured work and expenditure program:
Phase I allows Capella to earn a 30% interest by fulfilling minimum exploration commitments within 12 months, including an investment of €290,000 on the Filabres 1 permit. Phase II extends ownership to 51% through two additional years of exploration. In Phase III, Capella can achieve a 75% interest after six years of work commitments and completion of a Pre-Feasibility Study (PFS).
Verde retains the option to maintain a 25% stake by funding its share or dilute to a 2% Net Smelter Royalty (NSR). Capella has also committed to an environmental bond of €70,000 to the Andalucía government and will make an initial payment of €115,000 to Verde upon signing the LOI, along with annual payments tied to milestone achievements.
Exploration activities are set to commence immediately, with drill target definition planned for early 2026 and initial diamond drilling scheduled for later that year. The exploration program will be bolstered by geophysical surveys aimed at identifying potential buried IOCG systems that could feed into the extensive surface copper-gold veins.
The project management will be led by John Gray, an experienced geologist appointed as Solana Project Manager to oversee these upcoming exploration initiatives.
Strategic Integration into Capella’s Portfolio
The addition of the Solana project establishes a third continental pillar in Capella’s exploration strategy, complementing existing initiatives in Finland focused on gold-copper and ongoing copper-cobalt-zinc exploration in Norway. This expansion aligns with Capella’s objective of pursuing district-scale base and precious metals projects across Europe, particularly in underexplored mineral provinces that have historical production records and existing infrastructure.
The LOI and earn-in agreement are subject to regulatory approvals, including those from the TSX Venture Exchange. Upon completion, the Solana IOCG project could substantially enhance Capella’s copper-gold portfolio while diversifying its European exploration base and potentially unlocking high-value IOCG discoveries in Spain.
