October 29, 2009
Capella Closes Brokered Financing
Vancouver, B.C., October 29, 2009 -- CAPELLA RESOURCES LTD. (TSX-V:
KPS) ("Capella" or the "Company") is pleased to announce that it
has closed the brokered private placement (the "Offering")
previously announced in its news releases of October 5 and October
14, 2009. The lead agent for the Offering was Canaccord Capital
Corporation ("Canaccord") and the syndicate included Haywood
Securities Inc. ("Haywood" and together with Canaccord, the
"Agents"). The Agents exercised the $500,000 over-allotment option
(the "Over-allotment Option") described in the Company's October
5th news release.
The closing consisted of 13,306,498 units (the "Units") at a price
of $0.30 per Unit for gross proceeds of approximately $3,991,950.
Each Unit consists of one common share of the Company (a "Common
Share") and one Common Share purchase warrant (a "Warrant"). Each
Warrant entitles the holder thereof to purchase one Common Share at
a price of $0.45 for a period of two years from the closing of the
Offering. The Warrants are subject to an accelerated exercise
provision should the Common Shares trade at $1.00 or more for a
period of 20 consecutive trading days after the expiration of the
statutory hold period thereon.
The Agents received a cash commission equal to 7% of gross proceeds
raised and non-transferable broker warrants (the "Broker Warrants")
equal to 10% of the Units sold under the Offering. Each Broker
Warrant entitles the holder thereof to purchase one Common Share at
a price of $0.35 per Common Share for a period of 24 months from
the closing of the Offering. The Company also paid Canaccord a
corporate finance fee consisting of (i) the issuance of 162,374
Units (the "Corporate Finance Units") and (ii) a cash payment equal
to 0.5% of the gross proceeds raised under the Offering. Each
Corporate Finance Unit consists of one Common Share and one
non-transferable share purchase warrant (a "Corporate Finance
Warrant"). Each Corporate Finance Warrant entitles Canaccord to
purchase one additional Common Share (a "Corporate Finance Warrant
Share") at $0.45 per Corporate Finance Warrant Share for a period
of 24 months following the closing of the Offering, subject to
adjustment in certain events. The Corporate Finance Warrants are
subject to the same accelerated exercise provision that applies to
the Warrants. The Company also reimbursed the Agents for their fees
and expenses incurred in connection with the Offering and paid
Canaccord an administration fee.
The securities issued in connection with the Offering are subject
to a statutory hold period expiring on March 1, 2010. Final
acceptance of the Offering is subject to filing of final
documentation with the TSX Venture Exchange.
The funds raised from the issuance of the Units will be used for
general exploration expenditures and general working capital
purposes.
About Capella Resources Ltd.
Capella Resources Ltd. is a publicly traded, junior exploration and
mineral development company with a strong portfolio of precious and
base metal projects in Chile, USA and Atlantic Canada. The Company
has a 100% interest in the Lajitas and Nevada gold-copper
properties located in the Maricunga Gold and Copper District
approximately 700 kilometres northwest of Santiago, Chile. The
properties comprise ten exploration claims and six exploitation
claims totalling a cumulative 3,500 hectares in area. The Company
holds a 100% interest in the Tinton Gold Project located 15
kilometres west-northwest of the famous and historic Homestake Mine
in the Black Hills at Lead, South Dakota. The Tinton property
consists of 1,270 hectares contained in 157 unpatented mining
claims.
The Company also holds 3,393 mineral exploration claims covering an
aggregate land area of over 64,287 hectares in Atlantic Canada
(Nova Scotia, New Brunswick and Newfoundland and Labrador).
CAPELLA RESOURCES LTD.
(signed) "Richard Bachman"
Richard Bachman, Chief Executive Officer, President & Chief
Geological Officer
For further information, please contact:
Capella Resources Ltd.
Graham Johnstone
1-778-331-2023
Toll Free: 1-877-321-7474 Email: info@capellaresources.com
FORWARD LOOKING STATEMENTS: This press release contains
forward-looking statements, which address future events and
conditions, which are subject to various risks and uncertainties.
The Company's actual results and financial position could differ
materially from those anticipated in such forward-looking
statements as a result of numerous factors, some of which may be
beyond the Company's control. These factors include: results of
exploration activities and development of mineral properties,
fluctuations in the marketplace for the sale of minerals, the
inability to implement corporate strategies, the ability to obtain
financing, currency fluctuations, general market and industry
conditions and other risks disclosed in the Company's filings with
Canadian Securities Regulators.
Forward-looking statements are based on the expectations and
opinions of the Company's management on the date the statements are
made. The assumptions used in the preparation of such statements,
although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be
placed on forward-looking statements. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
You can view the Previous News item: Wed Oct 14, 2009, Capella
Announces Increase In Brokered Private Placement For Gross Proceeds
Of $3.5 Million (Subject To Over-Allotment)
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