Vancouver – The market value of Capella Resources (CPS-V, CVPLF-O) realized a uranium premium after it inked a deal to merge with the private junior explorer Tripple Uranium Resources that is hunting for the energy metal on a number of eastern Canadian prospects.
The business combination will see Capella issuing one share for every 1.5 shares of Tripple Uranium with a closing date expected around May 30th subject to all approvals.
With Tripple having about 9 million shares outstanding, Capella would issue about 6 million shares under the agreement giving it a total of around 30 million shares outstanding following closure of the deal.
Tripples uranium project portfolio consists of about 19,000 mineral claims covering some 4,450 sq. km in Labrador, Newfoundland, Nova Scotia and New Brunswick.
Capella, chaired by veteran Vancouver mining promoter R.A. Bruce MacDonald, also holds projects in Chiles Maricunga gold and copper district where it has recently conducted some initial-stage drill programs and also acquired an option on the Tinton gold property in the Black Hills area of South Dakota.
With spot uranium prices continuing to rise, shares of Capella got a 17% boost on the March 16th news of the planned acquisitions to close up 16 at $1.11 apiece on strong trading volume. Based on its current 24 million shares outstanding, the company posts $26-million market capitalization and has a 52-week trading range of 51-to-$1.35.