Business
Buchans Resources Completes Sale of Newfoundland Assets to Canterra Minerals
Buchans realizes $11.5 million in consideration from transaction or $0.178 per Buchans share, wit...
About this update from Canterra Minerals Corporation
[{"type":"text","content":"Buchans Resources Completes Sale of Newfoundland Assets to Canterra MineralsBuchans realizes $11.5 million in consideration from transaction or $0.178 per Buchans share, with a planned distribution of 2/3rds of such value to Buchans shareholders in H1 2024Toronto, Ontario--(Newsfile Corp. - December 20, 2023) - Buchans Resources Limited (\"Buchans\" or the \"Company\") is pleased to report that the Company and its wholly-owned subsidiary, Buchans Minerals Corporation (the \"Seller\"), have completed the previously announced sale of the Company's portfolio of critical and precious metals projects in central Newfoundland to Canterra Minerals Corporation (TSXV: CTM) (OTCQB: CTMCF) (\"Canterra\" or the \"Buyer\"), in exchange for common shares (\"Consideration Shares\") and special warrants (\"Consideration Warrants\") of Canterra (the \"Transaction\"). Based on the closing price of Canterra's common shares (the \"Canterra Shares\") on December 20, 2023, the total value of the consideration received by Buchans was approximately $11.5 million or $0.178 per common share of Buchans (\"Buchans Share\").Buchans intends to distribute at least 80% of the Canterra Shares underlying the Consideration Warrants (or at least 67% of the total value of the Transaction) (the \"Distribution\") to shareholders of Buchans (\"Buchans Shareholders\") during the first half of 2024.Further information on Canterra and its combined assets following the close of the Transaction is available in Canterra's press release today at www.canterraminerals.com. \"The benefits of this transaction for all parties have been illustrated by the 50% increase in Canterra's share price since we announced the deal on November 22nd,\" stated John Kearney, Chairman & CEO. \"Canterra has successfully raised $1.5 million in an oversubscribed financing since announcement, demonstrating their team's ability to finance and execute on advancing the world-class VMS opportunity that has now been consolidated in central Newfoundland.\"Mr. Kearney continued, \"Over the coming months, we intend to distribute most of the consideration received in this transaction to our shareholders, providing shareholders with publicly-traded Canterra common shares and the opportunity to realize on the Canterra team's exploration successes.\"\"During 2024, Buchans plans to explore on our nickel, copp...