Author: Atrium Research September 24, 2026
Ben Pirie| Equity Research Analyst | [email protected] | 647-688-9661
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
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MTT acquired 100% of three Santa Cruz projects for US$25K and 1.25M shares, eliminating US$290K in option payments and a 2% NSR on each.
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MTT now holds six 100%-owned projects (~79,000ha) in Argentina and is evaluating options to surface value, including a potential spin-out.
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The Company closed an upsized $3.75M private placement, with participation from its largest shareholder, Michael Gentile.
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We are raising our target price to $0.55/share (from $0.30/share) on a peer-group re-rating and updated option cashflows.
This morning, Magna Terra Minerals (MTT:TSXV, BRIOF:OTCPK) announced that it has acquired a 100% interest in its Cerro Covadonga, El Meridiano, and La Rosita projects in Santa Cruz Province, Argentina. The projects were previously held under an option agreement with a private individual, which has now been terminated. In exchange, MTT will pay US$25K in cash and issue 1.25M shares, replacing the US$290K in remaining option payments and eliminating the 2% NSR on each project. We are maintaining our BUY rating and increasing our target price to $0.55/share (previously $0.30/share) on Magna Terra Minerals.
Collectively covering 8,815ha, the three projects are prospective for low-sulphidation epithermal gold and silver mineralization. Exploration upside exists, highlighted by a 3km mineralized footprint at Cerro Covadonga, a large untested geophysical target at El Meridiano, and deeper structural targets at La Rosita. The projects are strategically located near several past and currently producing mines.
A clean slate ahead of a potential spin-out. With today’s transaction, MTT now holds a 100% interest in six discrete projects covering ~79,000ha in the Deseado Massif, alongside Luna Roja (optioned to Lunex Metals). Management noted it is now evaluating several options to surface value from the portfolio, including a potential spin-out into a stand-alone vehicle for a future listing on a Canadian exchange. Removing the 2% NSR on each project simplifies MTT’s ownership of the three projects, which we believe improves their appeal in any future option or spin-out.
Funded. On September 22ⁿᵈ, MTT closed an upsized $3.75M non-brokered private placement, bringing pro forma cash and short-term investments to ~$7.1M. The raise consisted of ~8.4M premium flow-through shares at $0.2375 (~$2.0M) and 10.0M common shares at $0.175 ($1.75M). The Company’s largest shareholder, Michael Gentile, participated (~1.3M flow-through shares) and now holds 15.6% of MTT, with director Patricia Kajda also subscribing.
Our Take Today’s acquisitions position MTT in a unique place with optionality on its now sizeable Argentina project portfolio. Whether the Company spins out these assets into a completely new vehicle or continues to execute on its cash-flowing project generation model, we believe MTT investors will eventually be rewarded. We remind shareholders of the Company’s track record of success over the past several years.
Valuation Update We have updated our valuation for the first time since initiating coverage of MTT, reflecting a re-rating across our Atlantic Canada peer group and the amended Gold Hunter agreement, as well as reflecting today’s acquisition (see page 3).
Catalysts
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Exploration Programs at Humber & Rocky Brook Projects – Ongoing
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Cash & Share Payments from Option Agreements – Ongoing
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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