OVERVIEW
Canadian Critical Minerals remains focused on advancing its mining assets in Canada in the
battery and critical minerals space. The Bull River Mine project is its most advanced project,
currently under care and maintenance. The Company continues to work with regulatory
authorities to restart the mine.
- CCMI generated a record monthly revenue of C$378,000 in October 2024 from the sale of
stockpile materials to New Afton. Assuming a monthly revenue run rate in the range of
C$300,000-C$350,000, the total revenue potential over the next 12 months could be around
C$3.6-C$4.2 million. This should ease financing concerns by providing near-term cash flow,
which will be used to restart the Bull River Mine.
- CCMI received an all-stock offer from QC Copper (TSXV: OCCU) to sell 100% interest in
its private subsidiary, Cuprum Corp, which holds a 100% interest in Thierry Mine. The
transaction is likely to be completed by the end of December 2024. Following the transaction,
CCMI will own nearly 26.77 million shares of QC Copper (or 10.4% stake), with an implied
value of C$3.2 million. The transaction offers liquidity to CCMI, given that QC Copper is a
publicly traded Company.
2025 is set to be an exciting year for the Company and has the potential to transform the
Company into a well-established producer. Our attention will be focused on the successful
restart of production at Bull River Mine.
Investment highlights
- Canadian Critical Minerals Inc. (TSXV: CCMI, OTCQX: RIINF) (the Company) is a base metals explorer with its flagship advanced copper project, the 100%-owned Bull River Mine in British Columbia.
- Bull River project generates record monthly revenue: CCMI achieved a record monthly revenue of C$378,000 in October 2024 from the sale of stockpile materials to New Afton. Based on a projected monthly revenue run rate of C$300,000 to C$350,000, the anticipated total revenue over the next 12 months is estimated to be approximately C$3.6 million to C$4.2 million. This positive financial outlook is expected to alleviate financing concerns by generating near-term cash flow, which is intended to support the reactivation of the Bull River
- Sale of Thierry Mine to QC Copper: CCMI has received an all-stock offer from QC Copper (TSXV: QCCU) to sell its entire interest in its private subsidiary, Cuprum Corp, which owns a 100% stake in Thierry Mine. The deal is expected to be finalized by the end of December 2024. Once the transaction is complete, CCMI will hold approximately 26.77 million shares of QC Copper, representing a 10.4% ownership stake with an estimated value of C$3.2 million. This transaction provides CCMI with liquidity, as QC Copper is publicly traded.
- Based on our analysis and valuation models, we reiterate our BUY rating and update our price target to C$0.18 per share (earlier C$0.19). The key catalyst for value creation will be the announcement of securing a permit for Bull River Mine. Management is confident that this will happen.
