Impact: Mildly Positive
Canterra Minerals announced that it has entered into an option agreement with Teck Resources (TSX:TECK.B, Not Rated), granting Teck an option to acquire up to a 100% interest in its Ring of Fire project in northeastern Ontario. Teck is to pay a total cash consideration of up to C$275k within two years and Canterra retains a 1.5% NSR, which can be reduced to 0.5% upon payment of an additional C$2M in cash. The Ring of Fire project is located in the James Bay Lowlands area prospective for Ni and PGE and remains underexplored due to limited bedrock exposure. In our view, this is an accretive deal as Canterra has brought on board a senior producer and monetized the property shortly after staking it in 2023. While it stands to benefit from exploration upside at the project through its retained royalty, we believe the focus remains on its Newfoundland projects, mainly in the Buchans VMS mining district.
