FREE

CTM: Consolidating a Strategic Land Position in Newfoundland

What you need to know:
• Canterra controls an over 684km2 land package in Central Newfoundland bordering Equinox Gold’s Valentine Mine.
• The consolidated critical mineral resource is the second largest in Newfoundland, at solid grade, with high conviction for further growth.
• The Company has commenced a fully funded 15,000m drill program with consistent results anticipated through 2026.
• While anchored by the Buchans Project, the Wilding Project has delivered stand out gold intercepts to the likes of Valentine, and we will get further results in the near-term.

Canterra Minerals Corp. (CTM:TSXV, CTMCF:OTC) is a Canadian explorer focused on advancing its consolidated land package in Central Newfoundland, which is strategically located on the Valentine Lake Shear Zone. The Company’s critical minerals resource is the second largest in Newfoundland, and further growth is anticipated from a fully funded 15,000m drill program. We are initiating coverage on CTM with a BUY rating and target price of $0.30/share.

Investment Thesis Summary
Strategically Consolidated Land Position in Emerging Mining District. CTM controls an extensive land package exceeding 684km2, which strategically borders Equinox Gold’s Valentine Mine, and includes the next ~55km of the Valentine Lake Shear Zone. Further, Newfoundland has emerged as a tier-1 mining district with strong government support to expedite development, evidenced by Valentine, and more recently, a 45-day release from environmental review by Fire Fly Metals’ Green Bay Project, among the fastest on record. Interestingly, CTM remains the only company on the prospective trend that is yet to see investment from a major miner, which we anticipate could come with further drill success. Eric Sprott and Michael Gentile combine for ~8% ownership, highlighting a notable backing.

Sizable Critical Minerals Resource. The consolidated VMS resource totals 26.7Mt from 7 deposits grading 2.1% CuEq, making it the second largest critical minerals resource in Newfoundland behind FireFly Metals. The Lundberg deposit at the past-producing Buchans Cu-Zn Mine contributes most of the current resource, while the other deposits and potential new high-grade VMS discoveries in the camp present an opportunity to add satellite deposits to achieve critical mass. In addition, we anticipate recent drill successes at Lundberg could translate to notable resource growth in an updated MRE.

Foundation of a Developer, Upside of an Explorer. As a past producing mine, Buchans has strong infrastructure in place to expedite development, and its critical minerals resource is expected to anchor a potential operation. With that said, the Wilding Project adds a substantial gold opportunity with 2025 drilling outlining Valentine-like intercepts, including 10.89 g/t over 31.5m, highlighting significant exploration upside within the camp.

Ongoing Exploration at High-Priority Targets. Canterra is currently conducting a fully funded 15,000m drill program, which will prioritize Buchans and Wilding, while also testing the wider property. The next batch of results is anticipated in the coming months and will continue to flow throughout the year, providing consistent catalysts. Ultimately, we see an opportunity for CTM to significantly expand resources while maintaining strong grades, and the stock continues to trade at a notable discount to peers.