FREE

MTT: High Exploration Potential and Cash Generation

What you need to know:
• Magna Terra is exploring two highly prospective projects in eastern Canada, the Humber Copper-Cobalt project in Newfoundland and the Rocky Brook Gold-Copper project in New Brunswick.
• The Company is supported by a successful project generation business model, which has provided over $5.8M since 2019, with a substantial $7.1M expected by 2029.
• With a market cap of just ~$11M and significant cash inflows over the next four years, MTT is largely undervalued in our view.

Magna Terra Minerals Inc. (MTT:TSXV, BRIOF:OTCPK) is a junior critical metals exploration company focused on the exploration of two prospective projects in Atlantic Canada. Since 2019, MTT has been able to successfully acquire, develop, and transact on projects to generate non-dilutive cash. This project generation model has brought in $5.8M and has since scaled up, with the Company expecting ~$7.1M in cash and shares through 2029. MTT also holds seven assets in Argentina and has recently launched project-generating activities in a market that has attracted significant international investment under the country’s new leadership. We see Magna Terra as a unique opportunity to get in at the ground level as it explores its projects with minimal dilution to existing shareholders. We are initiating coverage on Magna Terra Minerals with a BUY rating and a target price of $0.30/share.

Investment Thesis Summary
Two Key Large & High-Potential Exploration Assets. MTT controls >68,000ha across Newfoundland and New Brunswick through its Humber Copper-Cobalt and Rocky Brook Projects. Both assets are advancing with exploration programs planned through the remainder of the year, providing exposure to critical and precious metals in proven jurisdictions with significant discovery potential.

Cash Flow Generating Optioned Assets. Since 2019, MTT has employed a project generation strategy which has resulted in non-dilutive funding of over $5.8M. Going forward, this strategy is expected to generate even more capital (~$7.1M through 2029), which will be mostly allocated towards the development of its core exploration assets.

Argentina New Opportunities. The new political direction of Argentina has resulted in many new opportunities within the mining industry in the country, and as such, MTT, owning seven projects in Argentina, looks to take advantage of this.

Strong Capital Control, Minimizing Dilution. MTT has demonstrated disciplined capital control, carefully managing expenditures to minimize shareholder dilution while generating cashflow to support both G&A and exploration efforts. The Company’s project-generation model allows it to advance opportunities selectively until key discoveries emerge, providing a sustainable and value-driven approach well suited to early-stage explorers.

High Insider Ownership, Aligning with Investors. Strategic and well-respected mining investor Michael Gentile holds ~17% of MTT, providing credibility and long-term backing. Management and other insiders add another ~13%, ensuring strong alignment with shareholders and minimized dilution.