Business
Buchans Resources Sells Newfoundland Assets to Canterra Minerals
Providing Buchans Shareholders with Publicly-Traded Exposure to Consolidation of Highly Prospecti...
About this update from Canterra Minerals Corporation
[{"type":"text","content":"Buchans Resources Sells Newfoundland Assets to Canterra MineralsProviding Buchans Shareholders with Publicly-Traded Exposure to Consolidation of Highly Prospective Base Metals District in Central Newfoundland, Large Mineral Resource Inventory Across Multiple Deposits, Including the past Producing Buchans Mine and Other Critical and Precious Metals ProjectsToronto, Ontario--(Newsfile Corp. - November 22, 2023) - Buchans Resources Limited (\"Buchans\" or the \"Company\") is pleased to announce that the Company and its wholly-owned subsidiary, Buchans Minerals Corporation (the \"Seller\"), have entered into an asset purchase agreement (the \"Asset Purchase Agreement\") with Canterra Minerals Corporation (TSXV: CTM) (\"Canterra\" or the \"Buyer\") to sell the Company's portfolio of critical and precious metals projects in central Newfoundland, in exchange for common shares (\"Consideration Shares\") and special warrants (\"Consideration Warrants\") of Canterra, valued at approximately $7.5 million or $0.116 per common share of Buchans (\"Buchans Share\").Buchans intends to distribute at least 80% of the common shares of Canterra (the \"Canterra Shares\") underlying the Consideration Warrants to shareholders of Buchans (\"Buchans Shareholders\").Benefits to Buchans Shareholders include:Meaningful equity position in Canterra (TSXV: CTM) (OTCQB: CTMCF), an active and growth-oriented publicly-listed junior explorer in Newfoundland;Consolidation of highly prospective base metals district in Central Newfoundland, with a large mineral resource inventory across multiple deposits that ranks favourably in terms of tonnage and grade amongst the peer group, including the past producing Buchans Mine, a prolific polymetallic massive sulfide mine that was operated by ASARCO (and others) for over 50 years producing zinc and copper concentrate from high-grade ore; Near-term value to Buchans Shareholders via the distribution (the \"Distribution\") in due course of at least 80% of the Canterra Shares underlying the Consideration Warrants, representing a material proportion (at least 67%) of the $7.5M value of the Transaction based on Canterra's current share price ($0.05); High quality, supportive and concentrated shareholder base at Canterra;80% of shares held amongst small group of shareholders; Eric Sprott, Michael Gentile, Cairn, Altius and Pathfi...