Vancouver — Capella Resources (CPS-V, CVPLF-O) shares realized a “uranium premium” recently, shooting up 17% after the company inked a deal to merge with private junior explorer Tripple Uranium Resources, which is hunting for the energy metal on a number of eastern Canadian prospects.
The business combination will see Capella issue one share for every 1.5 shares of Tripple Uranium with a closing date around May 30, subject to all approvals.
Under the agreement, Capella would issue about 6 million shares for Tripple’s 9 million shares outstanding, giving it a total of around 30 million shares outstanding when the deal is closed.
Tripple’s uranium 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 Chile’s Maricunga gold and copper district, where it has recently conducted some initial-stage drill programs. The company has acquired an option on the Tinton gold property in the Black Hills area of South Dakota as well.
With spot uranium prices continuing to rise, shares of Capella got a 16 boost on the news to close up at $1.11 apiece on strong trading volume. Based on its current 24 million shares outstanding, the company posts a $26-million market capitalization and has a 52-week trading range of 51-$1.35.