Magna Terra Announces Amendment to Great Northern Project Option Agreement
MWN-AI** Summary
Magna Terra Minerals Inc. (TSXV: MTT) has announced an amendment to its Purchase Option Agreement with Gold Hunter Resources Inc. (CSE: HUNT) regarding the Great Northern Project in Newfoundland. Originally structured over a two-year period with a total payment of $9.5 million for a 100% interest in the project, the amended agreement extends the option period by an additional two years, increasing total gross proceeds to $10.075 million.
The increased financial terms include an upfront cash payment of $1.25 million upon signing the amendment, along with structured payments for the third and fourth anniversaries, with the flexibility for Gold Hunter to pay these in cash or a combination of cash and shares. This amendment is described as advantageous for both parties, as it provides Gold Hunter with added time to progress the project while affording Magna Terra additional funds to support its working capital management.
Lew Lawrick, President & CEO of Magna Terra, highlighted their substantial investment in Gold Hunter and expressed optimism about the flexibility introduced by the amended terms. He noted that the arrangement allows both companies to maximize the potential of the Great Northern Project while managing their financial positions effectively.
In addition, the press release outlines recent changes in Magna Terra's ownership of Gold Hunter shares following a private placement completed by Gold Hunter, which led to a decrease in Magna Terra's ownership to approximately 14.72%. Post-amendment, Magna Terra acquired an additional 18.6 million shares, elevating its stake to around 19.0% of Gold Hunter.
Magna Terra continues to focus on enhancing shareholder value through its diverse mineral projects, including its 100%-owned assets in Newfoundland and New Brunswick, while strategically leveraging partnerships to advance its initiatives.
MWN-AI** Analysis
The recent amendment to the Option Agreement between Magna Terra Minerals Inc. and Gold Hunter Resources Inc. represents a strategic maneuver that enhances both companies' financial flexibility and operational capabilities in the Great Northern Project. The extension of the option period by two years, coupled with an additional $575,000 in gross proceeds, is an astute move, particularly given the volatility often associated with mining exploration and development.
For investors, this development is notable for several reasons. First, Magna Terra's increasing stake in Gold Hunter—now at approximately 19%—bolsters confidence in the potential success of the Great Northern Project. As Gold Hunter navigates the extended timeline for the project's development, it will benefit from additional capital to invest in exploration and operational advancements, thus potentially unlocking greater value in the long term.
From a cash flow perspective, the restructured payment model—with a higher proportion of cash contributions—should significantly alleviate Magna Terra's working capital pressures. This clever adjustment can ensure that the company retains adequate liquidity to pursue its various projects in Atlantic Canada and beyond. For those evaluating potential investments in MTT, it's essential to consider the company's diversified portfolio and their strategic partnerships as a buffer against commodity price fluctuations.
However, investors should remain vigilant regarding the inherent risks tied to exploration ventures and the operational delays that can arise. The success of the Great Northern Project will ultimately hinge on Gold Hunter’s execution capability and the prevailing market conditions for gold and precious metals.
In conclusion, both Magna Terra and Gold Hunter stand to benefit from this amendment. Existing shareholders should monitor how these developments affect company performance while potential investors might view the extended timeline as an opportunity to enter at a favorable price point—keeping an eye on market reactions and new developments in the mining sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Toronto, Ontario--(Newsfile Corp. - March 18, 2026) - Magna Terra Minerals Inc. (TSXV: MTT) ("Magna Terra" or the "Company") announces that it has completed an amendment to the Purchase Option Agreement dated May 28, 2024, and amended June 10, 2024 (the "Option Agreement") with Gold Hunter Resources Inc. (CSE: HUNT) ("Gold Hunter") regarding the Great Northern Project ("Great Northern" or the "Project") in Newfoundland.
The original Option Agreement (please refer to the press release dated May 29, 2024) was structured over a two-year option period, whereby Gold Hunter would pay gross proceeds of $9.5 million to earn a 100% interest in the Project as follows:
| Term | Cash | Share Value | Total Value |
| Exclusivity (Paid) | $75,000 | $0 | $75,000 |
| On signing (Paid) | $300,000 | $1,000,000 | $1,300,000 |
| 1st anniversary (Paid) | $450,000 | $2,750,000 | $3,200,000 |
| 2nd anniversary | $675,000 | $4,250,000 | $4,925,000 |
| Total | $1,500,000 | $8,000,000 | $9,500,000 |
Under the amended Option Agreement, the term of the option period has been extended by two years, with an additional $575,000 in gross proceeds for a total of $10.075 million under the following amended payment terms:
| Term | Cash | Share Value* | Total Value |
| Exclusivity (Paid) | $75,000 | $0 | $75,000 |
| On signing (Paid) | $300,000 | $1,000,000 | $1,300,000 |
| 1st anniversary (Paid) | $450,000 | $2,750,000 | $3,200,000 |
| On signing of amendment | $1,250,000 | $1,250,000 | $2,500,000 |
| 3rd anniversary | $1,000,000 | $1,000,000 | $2,000,000 |
| 4th anniversary | $500,000 | $500,000 | $1,000,000 |
| Total | $3,575,000 | $6,500,000 | $10,075,000 |
*Gold Hunter, in its sole discretion, can pay the Share Value payments due on the 3rd and 4th anniversary in cash or a combination of cash and shares.
- All values referred to are Canadian dollars.
"This is a 'win-win' for both Magna Terra and Gold Hunter. As a significant existing shareholder of HUNT, we are invested in their success. By amending and extending the Option Agreement under these new payment terms, we will receive an additional $575,000 in gross proceeds, and the remaining payments are structured such that a greater proportion will be payable in cash, which assists our own working capital management process. Further, and as important, it gives Gold Hunter the time and capital flexibility to advance the Project as efficiently as possible."
Lew Lawrick - President & CEO, Magna Terra Minerals Inc.
Early Warning Disclosure
On February 2, 2026, Gold Hunter announced the closing of a private placement raising total gross proceeds of $6,749,894, resulting in the issuance of 102,740,000 Units at a price of $0.05 per Unit and 29,325,355 Flow-Through Units at a price of $0.055 per Flow-Through Unit (the "Gold Hunter Private Placement"). Each Unit consists of one Gold Hunter common share and one Gold Hunter common share purchase warrant entitling the holder to acquire one Gold Hunter common share at an exercise price of $0.075 for a period of 36 months from the date of issuance. Each Flow-Through Unit consists of one Gold Hunter common share and one-half of one Gold Hunter common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one Gold Hunter common share at an exercise price of $0.08 for a period of 36 months from the date of issuance.
Immediately prior to the Gold Hunter Private Placement, the Company beneficially owned 39,603,520 Gold Hunter common shares, representing approximately 28.90% of the issued and outstanding Gold Hunter common shares.
Immediately following the Gold Hunter Private Placement, in which the Company did not participate, the Company's interest in Gold Hunter decreased to approximately 14.72% of the issued and outstanding Gold Hunter common shares.
Between February 3, 2026 and March 3, 2026, the Company sold a total of 3,205,000 Gold Hunter common shares for gross proceeds of $252,055 at an average price of $0.0786 per Gold Hunter common share.
Immediately prior to the amendment to the Option Agreement, the Company beneficially owned 36,398,520 Gold Hunter common shares, representing approximately 13.53% of the issued and outstanding Gold Hunter common shares.
Pursuant to the amendment to the Option Agreement, the Company acquired 18,628,912 Gold Hunter common shares at a deemed consideration payable of $1,250,000 or a deemed price of $0.0671 per Gold Hunter common share. Immediately following the acquisition, the Company beneficially owned 55,027,432 Gold Hunter common shares, representing approximately 19.00% of the issued and outstanding Gold Hunter common shares.
Magna Terra holds the Gold Hunter common shares in the ordinary course of business in connection with the Option Agreement entered into by Gold Hunter and the Company. In the future, the Company may acquire additional Gold Hunter common shares or dispose of such securities subject to a number of factors, including general market and economic conditions, and the terms of the Option Agreement.
This press release is being issued pursuant to National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also requires an early warning report to be filed with the applicable securities regulators containing additional information with respect to the foregoing matters. A copy of the early warning report will be available under Gold Hunter's profile on SEDAR+ at www.sedarplus.ca, or by contacting Bill Francis at bfrancis@magnaterraminerals.com or 416-357-7047.
The Company's head office is located at 401-20 Adelaide St East, Toronto, Ontario, M5C 2T6.
About Magna Terra
Magna Terra Minerals Inc. is a precious and critical metals focused exploration company, headquartered in Toronto, Canada. Magna Terra is focused on acquiring and advancing its high-potential mineral projects in Atlantic Canada and Argentina while generating value for shareholders and minimizing shareholder dilution through option and joint venture partnerships where appropriate; leveraging our ability to explore, grow, and transact projects. The Company is focused on exploring our 100%-owned Humber Copper-Cobalt Project in Newfoundland and Labrador; our 100% owned Rocky Brook Gold and Critical Metals Project in the historic Bathurst Mining Camp of New Brunswick; the recently acquired Prospect Or's Dream Gold Project, and our 100%-owned Cape Spencer Gold Project in New Brunswick. In addition, the Company has optioned the Great Northern Project in Newfoundland to Gold Hunter Resources Inc. ("Gold Hunter") for total cash and share consideration of $10.075 million over a 4-year period, and currently holds an approximate 19.0% equity interest in Gold Hunter. The Company has also optioned the Luna Roja Project in Argentina to Lunex Metals Corp. (formerly Andean Metals Corp.) for total cash and share consideration of $2.375 million over a 4-year period. Further, the Company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina which includes its large 100% owned Boleadora Project, as well as several additional district scale drill ready projects available for purchase or option/joint venture.
Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward-Looking Information
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian legislation. All statements in this news release that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations and orientations regarding the future. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include Gold Hunter not having the sufficient resources to complete the option, future exploration work on the Project not delivering the anticipated results, and the inability of the Company to execute its proposed business plans and carry out planned future activities. Other factors may also adversely affect the future results or performance of the Company, including general economic, market or business conditions, future prices of gold, changes in the financial markets and in the demand for precious metals, changes in laws, regulations and policies affecting the mineral exploration industry, and the Company's investment and operation in the mineral exploration sector, as well as the risks and uncertainties which are more fully described in the Company's annual and quarterly management's discussion and analysis and in other filings made by the Company, as applicable, with Canadian securities regulatory authorities under the Company's SEDAR+ profile at www.sedarplus.ca. Readers are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.
These forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Magna Terra Minerals Inc.
Lewis Lawrick
President, CEO and Director
Phone: 905-301-9983
Email: info@magnaterraminerals.com
Website: www.magnaterraminerals.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/288916
FAQ**
How does the recent amendment to the Purchase Option Agreement by Magna Terra Minerals Inc. impact its cash flow and working capital management strategy in Toronto?
What implications does the approximately 19.0% equity interest in Gold Hunter have for Magna Terra Minerals Inc.’s overall valuation and investment strategy in Toronto's mineral exploration market?
In what ways could the outcomes of the Great Northern Project under Gold Hunter Resources Inc. influence the operational focus of Magna Terra Minerals Inc.?
What strategic advantages does Magna Terra Minerals Inc. foresee from extending its partnership with Gold Hunter Resources Inc. in light of changing market dynamics and exploration opportunities in Ontario?
**MWN-AI FAQ is based on asking OpenAI questions about Magna Terra Minerals Inc (OTC: BRIOF).
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