Canterra Minerals Corporation (TSXV:CTM) (OTCQB: CTMCF) (“Canterra” or the “Company”) is pleased to announce that it has entered into an Option Agreement with an Effective Date of September 17, 2024 (the “Agreement”) with Teck Resources Limited (“Teck”), granting Teck the option to acquire a 100% interest in Canterra’s Ring of Fire property (the “Project”) in northeastern Ontario, Canada, subject to a 1.5% Net Smelter Royalty to be retained by Canterra.
Chris Pennimpede, President and CEO of Canterra commented, “We are very pleased to monetize this recently staked property within our portfolio. Given Teck’s expertise and commitment to mineral exploration, we are confident they are well-positioned to unlock the full potential of the Ring of Fire Project. This sale allows Canterra to sharpen its focus on advancing our other critical mineral and gold, resource and exploration stage projects in the Central Newfoundland Mining District. We look forward to following Teck’s progress on the Project, where we hope additional value will be created for our shareholders through our retained royalty that provides continued exposure to future success in this prolific critical minerals district.”
Agreement Terms
In accordance with the terms of the Agreement, Canterra will option 100% of the Project to Teck for gross proceeds of $275,000 and retain a 1.5% Net Smelter Returns royalty (the “Royalty”) in the Project. The Royalty can be reduced to 0.5% upon the exercise of a buy-back right by Teck paying a further $2,000,000 to Canterra.
On or Before | Payment Amount (CDN $) |
Two Business Days following the Effective Date | $50,000 (Paid) |
Two Business Days following the Permit Date | $125,000 |
30 Business Days following the earliest to occur of the Drill Program Completion Date and the date that is 24 months following the Effective Date | $100,000 |
Total | $275,000 |
About the Ring of Fire Property
Canterra’s Ring of Fire Property is a 3,011 hectare (“ha”) land package acquired through staking in 2023 and is located 40 kilometres (“km”) southwest of the Eagle’s Nest Ni-PGE deposit. This underexplored area of the James Bay Lowlands is highly prospective for critical metals including nickel and platinum group elements (PGE) and remains largely unexplored due to limited bedrock exposure. The lack of previous drilling presents a unique opportunity for high-grade mineral discoveries ahead of infrastructure development as the Property is host to several strong VTEM (Versatile Time Domain Electromagnetic) anomalies identified as high-priority drill targets
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