07:28 AM EDT, 08/19/2024 (MT Newswires) -- Capella Minerals ( CMILF ) announced Monday it has acquired a 90% interest in Teako Minerals (TMIN.CN) Capella's Lokken copper-cobalt-zinc (Cu-Co-Zn) project in Trondelag, central Norway, for $350,000 and 2.5 million Teako common shares.

The deal includes a commitment by Teako to carry out drilling on the Amot target and bring additional Cu-Co-Zn targets to drill-ready status, with Capella retaining a non-dilutable 10% carried interest on the Lokken project through to commercial production.

In addition to advancing at least two further targets to drill-ready status within 24 months from signing, Teako will pay Capella a further $1.25 million to proceed to the construction of a mine within the Lokken project.

"In addition to creating a significant district-scale exploration and development project through the combination of Lokken with Teako's adjacent Lomunda and Venna projects," said Capella's President and CEO Eric Roth, "Capella shareholders also retain a direct interest in any discovery at Lokken all the way through to production, and also benefit from exploration success by Teako."