Capella Minerals has agreed to divest its interests in copper-zinc-cobalt projects in Norway to Norwegian mining company NickelX, in a cash and share deal worth C$7m ($5.13m).

These projects include the Hessjøgruva, Kjøli and Løkken projects, collectively called the Central Norway Copper Projects, in Trøndelag province.

NickelX currently owns 100% interests in the Hamn, Palfjellet, Birgivi and Envold nickel exploration projects in northern Norway.

The company intends to become Norway’s leading independent battery metals company by undertaking an initial public offering (IPO) on Oslo’s Euronext Growth Exchange.

Under the binding agreement, Capella will receive a C$5m cash payment at the closing of the deal, as well as C$2m worth of new NickelX shares upon completion of the IPO.

Capella president and CEO Eric Roth said: “Capella is pleased to have reached this agreement with NickelX providing for the creation of a premier Norwegian battery metals company.

Source: Mining Technology