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Friday, 22nd September 2006 (3058 views)

Capella Resources has announced that it has acquired an option to buy a property in the US.

The Tinton gold property is located in the South Dakota's Black Hills. It is situated close to the Homestake gold mine.

The company gained the option by paying International Mineral Resources (IMR) $85,000 and issuing them with one million Capella shares. The Triton site is made up of 157 unpatented claims.

A further stipulation of the agreement is that IMR will receive a five per cent royalty on all production from the mine. By paying IMR $1 million at any time, Capella can reduce this royalty to two per cent however.

Capella reports that the Tinton project is geographically similar to the Homestake mine, which produced over 40 million ounces of gold before its closure five years ago. Capella's president Richard Bachmann spent 13 years working at the Homestake mine and so has an extensive knowledge of the area.

Tinton's chairman Bruce MacDonald commented: "We are pleased to be involved with an opportunity such as the Tinton Project and with a technical team capable of exploring it."

 

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