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.

Capella president and CEO Eric Roth said: “The sale of the Savant Gold Project to our joint venture partner Prospector is consistent with our flagged strategy of exiting our precious metals projects in the Americas and focusing on our Scandinavian copper, gold and battery metal projects.

“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.”