Distribution of Common Shares of Canterra Minerals 

Buchans Resources is pleased to provide the following information to our stakeholders. All information is provided for informational purposes only, and is not intended for any trading, business, financial, or legal purpose.

On July 2, 2024, Buchans Resources Limited (“Buchans” or the “Company“) announced the distribution to Buchans shareholders of 113,243,613 common shares of Canterra Minerals Corporation (“Canterra”) (TSXV:CTM; OTCQB:CTMCF) effective June 28, 2024 (the “Distribution”) at a ratio of 1.75 Canterra Shares for each common share of Buchans held as of March 28, 2024. The effective price of the Canterra Shares distributed was $0.055, based on the closing price of the Canterra Shares on June 27, 2024.

The Distribution was made as a return-of-capital for Canadian tax purposes. For a more detailed description of the tax considerations regarding the Distribution, please refer to the Company’s Management’s Information Circular dated March 28, 2024, which was previously delivered to shareholders and is available below.

Buchans shareholders were sent a Direct Registration System statement (“DRS”) for the Canterra Shares that were distributed.

The Canterra Shares that were distributed are subject to certain contractual hold periods, with 1/3 being freely tradable on June 28, 2024, 1/3 being freely tradable on September 28, 2024 and 1/3 being freely tradable on December 28, 2024.

For questions regarding the Distribution, please contact the Company at info@BuchansLimited.com.

BACKGROUND TO THE DISTRIBUTION

In December 2023, Buchans sold certain mineral exploration properties located in central Newfoundland to Canterra, for 24,910,000 Canterra Shares and 128,554,216 exchangeable warrants of Canterra.

Pursuant to the Distribution, Buchans distributed 113,243,613 Canterra Shares to Buchans Shareholders valued at $6,500,883 or $0.096 per Buchans common share based on a Canterra Share price of $0.055. Buchans continues to hold 35,411,054 Canterra Shares, which the Company holds for investment and funding purposes.

Buchans’ transaction with Canterra consolidated the highly prospective base metals district in Central Newfoundland, centred on the famous Buchans mine and former Duck Pond mine, 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, and Teck’s former Duck Pond Mine, a substantial copper and zinc producer; Canterra anticipates being strongly positioned to unveil the next mineral discovery in central Newfoundland.

Buchans shareholders retain their shareholding in Buchans, with funding available to advance exploration on Buchans’ nickel, copper, cobalt and gold exploration assets in Labrador, with the ultimate goal of a sale or go-public transaction in respect of those assets, and at the same time will retain indirect exposure to exploration in the world renowned Buchans camp through the shares distributed in Canterra.

DOCUMENTS RELATING TO THE DISTRIBUTION

QUESTIONS ABOUT THE DISTRIBUTION

For inquiries regarding the Distribution, please contact Buchans Resources:

Buchans Resources Limited
1805 – 55 University Avenue
Toronto, Ontario, Canada
M5J 2H7

General Inquiries:

Tel:                +1 (416) 203 1418
Email:            info@BuchansLimited.com

 

For inquiries regarding registration details, or other matters associated with your DRS, please contact Computershare:

Computershare Investor Services (Vancouver) Inc.
510 Burrard Street, 3rd Floor
Vancouver, British Columbia, Canada
V6C 3B9

General Inquiries:
Tel:                       +1 (604) 661-9400
Toll-Free:            +1 (800) 564-6253
For Registered Shareholders:
+1 (800) 564-6253 (North America)
+1 (514) 982 7555 (International)		 For Brokers:
+1 (888) 838-1405
Online/Email:
Please visit the Computershare website and complete the online form.
https://www-us.computershare.com/Investor/Contact/Enquiry

ISIN for Canterra Minerals Corporation:                        CA1381432007

 

 

ABOUT BUCHANS RESOURCES

Buchans Resources holds interests in nickel, copper, cobalt, and gold properties in Labrador; and, indirectly, through its investment in Canterra Minerals Corporation (TSXV:CTM), in base and precious metals projects in Newfoundland, including the Buchans base metals district, and, through its investment in Royalties Inc. (CSE:RI), base metal and silver projects in Mexico and, through its investment in Minco Exploration PLC, base metal exploration licences in Ireland.

Buchans holds a 100% interest in its 92 claim (23.0 km2) Tasiuyak gold property in Labrador located 10 km south of Vale’s Voisey’s Bay nickel-copper-cobalt mine.  The property covers the VBE-2 gold prospect discovered by previous explorers during the Voisey’s Bay exploration rush in the mid-1990s. Buchans believes that the Tasiuyak gold property geology may be analogous to the geology of the former Homestake gold mine in South Dakota that is reported to have produced more than 40 million ounces of gold by mining between 1876 and 2001.

Buchans holds (100%) two properties in Labrador considered prospective for Voisey’s Bay-style nickel-copper-cobalt deposits, including 43 claims (10.75 km2) covering prospective troctolitic gabbros of the Pants Lake Intrusive Suite at South Voisey’s Bay, and 5 claims (1.25 km2) covering mineralized troctolite at Voisey’s Bay itself.

The South Voisey’s Bay property is located 80 km south of Vale’s (NYSE:VALE) Voisey’s Bay mine and covers mineralized troctolitic gabbros comparable in age and composition to rocks hosting the Voisey’s Bay deposits.

The Luk property is located 8 km southwest of Vale’s Voisey’s Bay nickel-copper-cobalt mine in northern Labrador and covers the extension of the same troctolitic intrusion that hosts the Voisey’s Bay mine on Vale’s adjacent mine property.

Buchans plans to advance exploration on these long-overlooked but promising critical minerals assets over the course of the next two years. Buchans’ South Voisey’s Bay Ni/Cu/Co project has high-priority, drill-ready targets in a confirmed Voisey Bay Deposit-style environment, while its Tasiuyak Gold Project is believed to represent an orogenic, iron formation-hosted gold environment, comparable to the renowned former Homestake gold mine in South Dakota.