On October 31, 2022, Capella announced that it had completed its acquisition of a 100% interest in a portfolio of lithium (lithium-cesium-tantalum, or “LCT”) and rare-earth element (“REE”) pegmatite reservations in central Finland (Figure 1). The projects are predominantly focused on LCT pegmatite complexes located within the Järvi-Pohjanmaa and Seinäjoki lithium-permissive tracts as defined by the Geological Survey of Finland (“GTK”).
Four of the reservations (Nabba, Lappajarvi W and E, and Kaatiala) lie immediately adjacent to, and to the S of, Kelibre Oy’s spodumene mine development project in the Kaustinen district.
The acquisition of these projects will significantly enhance Capella’s existing portfolio of lithium-REE (Perho) and copper-gold (Katajavaara-Aakenus) projects in Finland. Accordingly, the Company will be extremely well placed to participate in the global electrification and decarbonization process.
European Commission Critical Raw Minerals Act
On September 14, 2022, the European Commission outlined the creation of the European Critical Raw Minerals Act (“ECRM”), which is designed to support the development of a resilient European supply chain of both lithium and REE’s. Initial targets indicated in the ECRM Act are that at least 30% of the European Union’s demand for refined lithium by 2030 should be sourced from the EU itself (in addition to at least 20% of REE demand). Capella’s enhanced Li-REE portfolio will provide the Company with a the potential to become one of the EU’s major sources of these commodities.
In parallel, the Norwegian government has also thrown support behind the construction of the country’s first major lithium-ion battery plant in the northern city of Mo I Rana. This plant, which is currently expected to enter in to operation in 2025, is part of a broader governmental strategy to take advantage of the abundance of low-cost renewable (hydroelectric) energy in-country and become a major contributor to future lithium battery production.
Expected 2022/2023 Work Program
Capella’s initial work program will be to focus on compiling all available geological and geophysical data required to prioritize areas with potential for the discovery of new pegmatite-hosted lithium deposits. This will be followed-up with the ground truthing of areas of interest in late 2022, with systematic field work programs expected to begin in Spring 2023.