Capella Minerals Ltd. has announced that it has entered in to a binding letter agreement with elementX Finland Oy for the acquisition of a 100% interest in a portfolio of seven lithium pegmatite and rare-earth element (“REE”) reservations in southern Finland.
The elementX 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”). The southernmost Kaldo reservation also hosts four known uranium occurrences, including the former Käldö mine which is reported by the GTK to have ceased operations in 1959.
The acquisition of the elementX projects will significantly enhance Capella’s existing portfolio of lithium-REE (Perho) and copper-gold (Katajavaara-Aakenus) projects in Finland, in addition to its portfolio of high-grade copper-cobalt-zinc projects in Norway. Accordingly, the Company will be extremely well placed to participate in the global electrification and decarbonization process.
Eric Roth, Capella’s President and CEO, commented: “I am extremely pleased to be reporting that Capella is increasing its exposure to the metals required for Europe’s green energy transition and energy storage. 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).”
“In parallel – Roth added – the Norwegian government is also strongly supporting the construction of the country’s first lithium-ion battery plant in the northern city of Mo I Rana. This battery 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 global lithium battery production. In overview, the elementX acquisition is expected to provide Capella with a significant opportunity to be a major player in the growth of lithium and REE production in Finland, which itself has the potential to become one of the EU’s major sources of these desired commodities. I look forward to keeping the market updated on progress on both our Finnish and Norwegian assets“.