| 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: 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 Next News item: Thu Nov 12, 2009, Capella Announces Results From Annual And Special Meeting 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) You can return to the main News page, or press the Back button on your browser. |