• Cu: $
  • Au: $
  • FRA: N7D2

Katajavaara- Aakenus

Capella Minerals Initial 70% Interest

Targeting High-Grade Gold and Base Metal Deposits in the Central Lapland Greenstone Belt                        

Capella holds an initial 70% interest in the Katajavaara and Aakenus gold(-copper) projects in the highly prospective Central Lapland Greenstone Belt (“CLGB”) of northern Finland. The 70% project interest was acquired from ASX-listed Cullen Resources Limited (ASX: CUL)(“Cullen”) through an earn-in agreement announced on August 24, 2021. The Katajavaara and Aakenus projects lie immediately adjacent to the productive Sirkka Thrust Zone, a regional structural corridor within the CLGB which is associated with numerous occurrences of both gold and base metals.

A high-resolution drone magnetic survey was completed at Katajavaara-Aakenus by Capella in April, 2022. In September, 2022, an initial four exploration permit licence applications (”EPLA”) were applied for based on results from both the drone magnetic survey and historical geological and geological datasets. The four EPLA’s cover priority targets including potential extensions to Outokumpu Oy’s former Saattopora gold-copper mining operation and the significant historical gold-copper Bottom of Till (“BoT”) geochemical anomalies generated by AngloAmerican in the Killero area (Figure 1).

Figure 1. Location of the Katajavaara - Aakenus projects in the Central Lapland Greenstone Belt, together with the locations of the four EPLA’s (Killero E, Saattopora W, Kelsunselka, Johikko) applied for by the Company in September, 2022.

Project Snapshot


20 km NW of Kittila, Finland


Capella Minerals Initial 70% Interest


Early-stage exploration

Deposit types

Orogenic gold & copper deposits

Project Area

20,000 Ha / 200 sq. km.

Host Rocks

Meta-volcanic/sedimentary sequences



Main Economic Elements

Gold, Copper


All weather paved highways and gravel roads

Central Lapland Greenstone Belt

The Katajavaara-Aakenus project covers an area of approximately 200 square kilometres and lies immediately adjacent to the Sirkka Thrust Zone, a well-mineralized regional structural corridor within the Central Lapland Greenstone Belt (“CLGB”). Significant recent discoveries within the CLGB include Ikkari (Rupert Resources; current Mineral Resource of 49MT @ 2.5 grams per tonne (“g/t) gold (“Au”) for 3.95Moz Au; NI 43-101 Technical Report filed on www.sedar.com on September 13, 2021) and Aamurusko (Risti-Launi; Aurion Resources Ltd)1.

1 References made to nearby mines and analogous deposits provide context for the Katajavaara-Aakenus project but are not necessarily indicative that these projects host similar tonnages or grades of mineralization.

Priority Targets Defined on the Katajavaara-Aakenus Project

An initial four exploration permit licence applications (“EPLA”) were made in September, 2022 based on interpretations undertaken of the high-resolution drone magnetic dataset and historical geological and geochemical datasets. The EPLA’s cover the following priority targets:

  • Killero E – designed to cover the exceptional copper-gold values returned from historical BoT sampling by Anglo American PLC1 but never followed-up with core drilling. The Killero BoT anomalies are also associated with a prominent NE-trending structural corridor (Figure 2).    
  • Saattopora W – covers an interpreted WNW trending extensions to Outokumpu Oy’s former Saattopora copper-gold mine, in addition to some previously unknown NW-trending splays.
  • Keisunselka – high-grade gold target in interpreted deformed banded iron formation
  • Jolhikko – gold and base metal targets in complex deformation zone   

Figure 2. Enlargement of the Killero copper-gold BoT anomaly area. Background: Total Magnetic Field Intensity (TMI) data. 

Capella currently anticipates these initial four EPLA’s to be approved during Q1, 2023, thereby allowing for the commencement of significant field work programs (such as additional BoT sampling and core drilling) from late Q1, 2023.  

1 Historic geochemical results quoted for Killero are derived from GTK (Geological Survey of Finland) datasets. Whilst Capella has not performed sufficient work to verify the published data reported, the Company believes this information to be considered reliable and relevant.

Terms of Capella’s Earn-In

Capella’s earn-in agreement for the Katajavaara and Aakenus projects was announced on August 24, 2021 and received TSX.V Exchange approval on September 7, 2021.

Key terms of the earn-in agreement are:

  • Capella acquired an initial 70% interest in Cullen Oy (Cullen’s 100%-owned Finnish subsidiary, and registered owner of the Katajavaara and Aakenus projects) in return for having paid Cullen AUD 50,000 upon receipt of Exchange approval (the “Closing Date”).
  • Capella will be required to invest a total of USD 250,000 in exploration expenditures on the two projects over a 24 month period from the Closing Date.
  • Capella may then acquire a further 10% interest in Cullen Oy (for a total 80% interest) in return for a further USD 750,000 investment in the two projects over a 4.5 year period from the Closing Date.
  • Cullen will then be free carried until the completion of a Pre-Feasibility Study (“PFS”) on either of the two projects. Thereafter, a standard dilution formula will apply and should either party’s direct interest fall to below 10% then they will revert to a 2% Net Smelter Royalty (with 1% being purchasable for USD 1 million).

In addition, the following cash payments are required to be made to Cullen:

  • USD 50,000 on the first anniversary of the Closing Date (paid)
  • USD 75,000 on the second anniversary of the Closing Date
  • USD 100,000 on the third anniversary of the Closing Date