Capella Minerals is broadening its European base metals and gold footprint through a binding Letter of Intent (LOI) with Verde Minerals Ltd, targeting the Solana Iron Oxide Copper-Gold (IOCG) Project in southern Spain. The staged earn-in agreement marks a significant expansion for Capella beyond its Northern European assets, positioning the company in a historically underexplored IOCG district with strong discovery potential.
Project Scale and Geological Significance
The Solana project is located approximately 80 km northwest of Almería and 20 km east of the historic Alquife iron mine, encompassing a district-scale corridor of copper-gold mineralization stretching over 35 km, with a cumulative strike length exceeding 50 km. Key features include:
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Formerly producing Cerro de Gallo and Solana high-grade copper-gold veins
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The Conde Xiquena haematite mine, rich in copper
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NNW-trending, haematite-rich veins hosted in Proterozoic meta-sedimentary rocks underlain by felsic intrusives
The project represents a strategic pivot into IOCG-style systems, distinct from Capella’s earlier focus on the Iberian Pyrite Belt, and taps into a geological regime that has seen limited modern exploration since the 1920s.
Phased Earn-In Structure
Under the LOI, Capella can earn up to a 75% interest in Solana from Verde’s Spanish subsidiary, Cobre y Oro Andaluz (CyOA), through a structured work and expenditure programme:
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Phase I: Earn 30% interest by meeting minimum exploration commitments within 12 months, including €290,000 on the Filabres 1 permit
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Phase II: Extend ownership to 51% through two years of additional exploration
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Phase III: Achieve 75% interest following six years of work commitments and completion of a Pre-Feasibility Study (PFS)
Verde retains the option to maintain a 25% stake by funding its share of work or dilute to a 2% Net Smelter Royalty (NSR) under standard industry dilution formulas. Capella has committed a €70,000 environmental bond to the Andalucía government and will pay €115,000 to Verde on LOI signing, with additional annual payments of €50,000 tied to milestone achievements.
Capella is set to begin exploration immediately, with drill target definition scheduled for early 2026 and initial diamond drilling planned later that year. The programme will be supported by geophysical surveys, including magneto-telluric and gravity studies, designed to identify potential buried IOCG mineralizing systems feeding the extensive surface copper-gold veins.
The project is managed by John Gray, an experienced geologist appointed as Solana Project Manager, to oversee the upcoming exploration activities.
Strategic Fit Within Capella’s European Portfolio
Solana adds a third continental pillar to Capella’s exploration strategy, complementing:
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Gold-copper initiatives in Finland
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Copper-cobalt-zinc exploration in Norway
This expansion aligns with the company’s strategy of pursuing district-scale base and precious metals projects across Europe, targeting underexplored mineral provinces with historical production, existing infrastructure, and access to renewable energy sources—factors that enhance the potential for rapid exploration success.
The LOI and earn-in agreement remain subject to regulatory and exchange approvals, including the TSX Venture Exchange. Once completed, the Solana IOCG project could significantly enhance Capella’s copper-gold portfolio, diversifying its European exploration base while opening the door to high-potential IOCG discovery in Spain.
