Buchans Resources Limited (the “Company” or “Buchans”), a Canadian mineral exploration and development company, reports its financial results and results of operations for the nine-months ended September 30, 2023.
This news release should be read in conjunction with the Company’s interim financial statements and the associated management’s discussion and analysis (MD&A) for the nine-month period ended September 30, 2023 which are available on the Company’s website at www.BuchansResources.com or under the Company’s profile at www.sedarplus.ca.
TRANSACTION WITH CANTERRA
On November 22, 2023, the Company and its subsidiary Buchans Minerals Corporation entered into an agreement with Canterra Minerals Corporation to sell the Company’s exploration and evaluation assets in central Newfoundland, in exchange for shares and consideration warrants of Canterra. Closing of the transaction is expected to be completed in December 2023 and remains subject to customary conditions for transactions of this nature, including third-party consents and waivers, and the acceptance by the TSX Venture Exchange. The Company plans in due course to distribute at least 80% of the Canterra shares underlying the consideration warrants to shareholders of Buchans.
COMPANY OVERVIEW
Buchans’ flagship project consists of the historic, high-grade Buchans VMS base metal mining camp in central Newfoundland, Canada. Recognized internationally as one of the world’s richest and highest grade VMS-camps, opportunities remain to advance this project through exploration for new high-grade orebodies as well as advancing the project’s large lower grade Lundberg stockwork base metal sulphide deposit as a possible open pit resource development.
Buchans is also exploring several gold properties in central Newfoundland, including two properties being explored as joint ventures, with one operated and funded by a joint venture partner.
Upon closing of the Canterra transaction, Buchans will continue to hold its promising nickel, copper, cobalt and gold exploration assets in Labrador, with the goal of advancing exploration on these assets over the course of the next 18-months. Buchans’ South Voiseys Bay Ni/Cu/Co Project has high-priority, drill-ready targets in a confirmed Voisey Bay-style environment, and Tasiuyak Gold Project is in orogenic iron formation-hosted geology, a similar setting to the renowned Homestake Mine in South Dakota.
In addition to its project portfolio, Buchans holds equity interests in Ireland through its 14.4% shareholding in Minco Exploration plc. The Company also holds 43,000,003 shares of Royalties Inc. (“Royalties”) at a fair market value on September 30, 2023 of $1,720,000.
Qualified Person:
Paul Moore, M.Sc., P.Geo., (NL), Vice President Exploration of Buchans Resources Limited and a Qualified Person as defined by National Instrument 43-101, has approved the scientific and technical disclosure in this News Release.
FINANCIAL RESULTS
Buchans recorded no revenue in the nine months ended September 30, 2023 or September 30, 2022.
For the three months ended September 30, 2023, the Company recorded a loss of $1,155,565. These results included a loss in fair value of marketable securities of $1,077,000.
For the nine months ended September 30, 2023, the Company recorded income of $1,476,745. This income included a reversal of impairment in the amount of $2,330,663 and a loss in fair value of marketable securities of $612,662.
During the nine months ended September 30, 2023, Buchans invested $486,783 on exploration expenditures on its mineral properties.
At September 30, 2023, Buchans held $24,279 (December 31, 2022- $562,396) in cash and cash equivalents and $1,723,500 in marketable securities, and had a working capital surplus of $1,195,598, compared to a working capital surplus of $225,590 at December 31, 2022.