CAPELLA RESOURCES LTD. (TSX VENTURE:KPS) (PINK SHEETS:CPSJF) ("Capella" or the "Company") wishes to announce that it has closed its non-brokered private placement announced on September 16, 2010.
The first tranche of 10,000,000 flow-through shares ("FT Shares") at a price of $0.09 per FT Share closed on September 23, 2010. The FT Shares are subject to a 4 month hold period expiring on January 24, 2011.
The second tranche of 10,000,000 non flow-through units ("Units") at a price of $0.09 per Unit closed on October 4, 2010. Each Unit consisted of one common share (a "Share") and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share ("Warrant Share") at a price of $0.20 per Warrant Share until October 4, 2012. The Shares and Warrants are subject to a 4 month hold period expiring on February 5, 2011.
The total gross proceeds raised by the sale of the FT Shares and Units was $1,800,000.
The Company has paid cash finder's fees equal to 5% of the funds raised by the sale of the FT Shares and a portion of the Units. The Company has also issued finder's warrants equal to 5% of 8,700,000 Units sold. Each finder's warrant entitles the holder thereof to purchase one common share at a price of $0.125 until October 4, 2011.
Proceeds of the private placement will be used for eligible expenditure on the Company's properties in Canada and for general working capital purposes.
Source: CAPELLA RESOURCES LTD.