TSX-V-listed Canterra Minerals has entered into an option agreement with Teck Resources, granting the Canadian major an option to acquire a 100% interest in its Ring of Fire property, in north-eastern Ontario.
Canterra will retain a 1.5% net smelter royalty on the project.
“We are very pleased to monetise this recently staked property within our portfolio. Given Teck's expertise and commitment to mineral exploration, we are confident they are well-positioned to unlock the full potential of the Ring of Fire project,” said Canterra president and CEO Chris Pennimpede.
Canterra’s Ring of Fire property is a 3 ha land package acquired through staking in 2023 and is located 40 km south-west of the Eagle's Nest nickel/platinum group elements (PGE) deposit. This underexplored area of the James Bay Lowlands is highly prospective for critical metals including nickel and PGE and remains largely unexplored owing to limited bedrock exposure.
The sale allows Canterra to sharpen its focus on advancing its other critical mineral and gold projects in the Central Newfoundland mining district.
Canterra will option 100% of the project to Teck for gross proceeds of C$275 000 and retain a 1.5% royalty. The royalty can be reduced to 0.5% upon the exercise of a buy-back right by Teck paying a further C$2-million to Canterra. 