On December 20, 2023, Canterra Minerals Corporation completed the acquisition from Buchans Resources Limited of the mineral rights to several critical and precious metals projects in central Newfoundland, adding 316 square kilometres to Canterra’s already substantial property position.
Canterra concurrently closed an oversubscribed non-brokered private placement of critical mineral exploration tax credit flow-through common shares for gross proceeds of approximately $1.5 million.
Consideration was comprised of (i) 24,910,000 common shares of Canterra, representing an approximate 19.9% ownership interest, and (ii) 128,554,216 common share purchase warrants of Canterra exchangeable for common shares of Canterra within two years of closing (subject to extension in certain circumstances), for no additional consideration, upon the fulfillment of certain conditions, particularly that the exchange of the warrants will not result in a change of control of Canterra or the creation of a new control person of Canterra, as defined by the TSX Venture Exchange. Total consideration value is approximately $7.5 million based on Canterra’s closing price of $0.05 per share.
Cassels acted for Canterra.