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  • FRA: N7D

Løkken High-Grade Copper-Cobalt VMS Project

Teako Minerals Strategic Partnership

Near-Mine and Greenfields Exploration in Past-Producing Copper Mining District

On August 19, 2024, Capella announced a strategic partnership with Teako Minerals Corp. (CSE: TMIN) (“Teako”) in the Løkken District. Under this agreement, Teako has acquired a 90% interest in Capella’s Løkken copper-rich massive sulfide (“VMS”) project in Trøndelag County, central Norway, in return for a combination of cash and Teako shares, a formal commitment to drill the Amot target (and to bring additional copper-cobalt zinc targets to drill-ready status), and with Capella retaining a non-dilutable 10% carried interest on any discovery at Løkken to production.

Capella’s Løkken project covers 114 sq. km and contains the former Løkken underground copper mine, the largest ophiolite-hosted Cyprus-type VMS deposit (by tonnage) to have been developed globally with reported production of 24Mt @ 2.3% Cu and 1.8% Zn (plus silver and gold credits)1. The Løkken claim block covers a significant portion of the old Løkken mine infrastructure (shafts, historical mineral processing facilities, railway loading area for concentrate, etc), in addition to multiple satellite occurrences of copper-rich VMS mineralization with varying degrees of development. Teako also separately has significant land holdings in the adjacent Lomunda and Venna projects, providing both companies with exposure to new Løkken-style discoveries within a regional-scale project.

The Amot target at Løkken is drill-ready with permitting currently being reinitiated for a maiden winter 2024/2025 core drill program.

Project Snapshot

Location 50 km S of Trondheim, Norway
Ownership 90% Teako Minerals Corp / 10% Capella Minerals Ltd
2.5% NSR to EMX Royalty, with 0.5% purchasable for USD 1M.
Status Near-mine and greenfields exploration
Deposit type High-grade copper-rich VMS deposits
Property Size 11,400 Ha / 114 sq km (Capella)
Host Rocks Ophiolite sequence
Age Ordovician
Main Economic Elements Copper, Zinc, Cobalt, Silver, Gold
Access All weather paved highways and gravel roads

1 Historic production values quoted above are from Grenne et al. 1999. Capella and EMX have not performed sufficient work to verify the published data reported above, but both Companies believe this information is considered reliable and relevant. (Mineralium Deposita 34, 422–471

Løkken – Regional Setting

The Løkken massive sulfide (“VMS”) districts in central Norway lies within the so-called Caledonian orogeny, which is interpreted to have extended from the productive VMS districts in NE Canada (Bathurst Mining Camp, New Brunswick; Buchans District, Newfoundland) and the Appalachian US to northern Norway (Figure 1). Mineralization at Løkken is hosted by a sequence of Ordovician-age metabasalts (mixed pillow and massive basalts) within an overturned ophiolite sequence.  


Figure 1. Location of the Løkken deposit in the Caledonian orogeny (left) and mine-scale geology (right).


Figure 2. The subtle Løkken discovery outcrop (left) and 3D model of the old Løkken mine (right).

The former Løkken Mine consisted of a stratiform massive sulfide deposit which was approximately 4km in length, reached a maximum depth of 1km, and had an average thickness of 60m1 (Figure 2). Mineralization consisted of massive chalcopyrite, sphalerite, pyrite, and pyrrhotite. Given that VMS deposits typically occur in clusters, field activities at Løkken will follow two main paths i) exploring potential extensions to the known mineralization at Løkken, and ii) advancing priority near-mine targets to drilling.

Løkken Claim Block and Priority Exploration Targets


Figure 3. Løkken claim block and the priority Capella exploration targets.


Figure 4. Select VMS targets on the Løkken claim block – Dragset, Hoydal, Amot.

Key targets identified to date with Capella’s former Løkken property holding include:

Amot Target

Amot is an undrilled VMS target which lies approximately 5km E of the old Løkken mine. The Amot Cu-Zn-Co target consists of a buried (interpreted depth to target: 150m), 1.5km-long coincident ground magnetic and electromagnetic anomaly considered to be a highly favourable combination for VMS deposits (Figure 5). Initial IL results also suggest anomalous copper, cobalt, and zinc values in the overlying soils. The Amot target is drill-ready with permitting currently being reinitiated for a maiden winter 2024/2025 core drill program.


Figure 5. Coincident ground magnetic and electromagnetic anomalies at Amot.

Hoydal Target

The Hoydal Cu-Co-Zn target lies between the former Løkken copper mine and Capella’s Amot target. Work completed by previous operators had focused on evaluating the upside potential of an interpreted feeder zone at Hoydal; this work included the undertaking of diamond drilling along approximately 750m of strike and from which a mineralized envelope of >1% Cu was defined (Figure 6). Follow-up drill testing of key historic holes at Hoydal (“twin holes”) in addition to new targets are currently expected to be undertaken in early 2025.  


Figure 6. Work completed by Capella at Hoydal (ground magnetic survey and IL survey lines) together with the locations of historical diamond drill holes and the historic mineralization envelope2,3.

2 Historical results have not been independently verified by the Company.  A potential investor should not place undue reliance on these historical drill results when making an investment decision, nor should they be used as the sole criterion for making investment decisions. There is no assurance that the Company can reproduce such results, or that the historic results described herein will be realized.

3The historic mineralization envelope does not constitute a mineral resource estimate and the Company is not treating the historic mineralization as a current resource.

Terms of the Teako Agreement

Key terms of the Agreement under which Teako has acquired a 90% interest in the Løkken project include:  

  1. Capella to receive $C 350,000 in cash and 2,500,000 common Teako shares on or before August 30, 2024 (completed).
  2. Teako to commit to drilling the Åmot target with new funds raised within twelve months of signing the Agreement, in addition to advancing at least two further targets to drill-ready status within 24 months from signing (in progress).
  3. Teako to pay Capella a further CAD 1,250,000 upon a Final Investment Decision (“FID”) being made to proceed to the construction of a mine within the Løkken project. 
  4. Capella to retain a 10% carried interest to production, which includes capital costs, on any discovery made within the Løkken project.
  5. Teako to keep the property in good standing and to make all annual advanced royalty payments to EMX Royalty Corporation (“EMX”) starting 30 September, 2024.
  6. Customary tag along / drag along rights, with Capella maintaining at all times a Right of First Refusal (“ROFR”) on any bona fide third-party offer received for Teako’s interest in the Løkken project. 

Teako’s adjacent Lomunda and Venna properties are indicated in Figure 7.


Figure 7. Combined Capella (Løkken) and Teako (Lomunda & Venna) property holdings in the Løkken district.