CANTERRA MINERALS CORPORATION
MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS – FORM 51-102F
For the nine months ended September 30, 2021
This Management’s Discussion and Analysis (“MD&A“) reviews the activities of Canterra Minerals Corporation (“Canterra“, or the “Company“) and compares the financial results for the three and nine months period ended September 30, 2021 (“third quarter 2021” and “nine months fiscal 2021“, respectively) with the comparable period in 2020 (“third quarter 2020″ and “nine months fiscal 2020“, respectively). This MD&A should be read in conjunction with interim condensed consolidated financial statements for the third quarter 2021 and the audited consolidated financial statements and accompanying notes for the year ended December 31, 2020, copies of which are filed under the Company’s profile on the SEDAR website, www.sedar.com.
The Company was incorporated as 580312 B.C. Ltd. in British Columbia on February 18, 1999 and adopted the name “Diamondex Resources Ltd.” on March 23, 1999. The Company adopted its present name on December 9, 2009, in connection with the business combination of Diamondex and Triex Minerals Corporation (“Triex”). The Company’s head office and principal address is Suite 580 – 625 Howe Street, Vancouver, British Columbia, Canada, V6C 2T6. The Company’s registered and records office is Suite 2200 – 885 W Georgia Street, Vancouver, British Columbia, Canada, V6C 3E8. The Company’s functional currency is the Canadian dollar.
The information in this MD&A is provided as of the date of this MD&A, November 23rd, 2021 (the “Report Date“).
DESCRIPTION AND OVERVIEW OF BUSINESS
The Company is a Canadian resource exploration company with a focus on gold exploration in Newfoundland and holding diamond properties in the Northwest Territories and Alberta.
The Company holds the Marlin property in the Northwest Territories and holds a 33% interest in the Buffalo Hills Diamond Project in Northern Alberta.
As of September 30, 2021, the Company had working capital of approximately $4.2 million. The Company’s ability to continue as a going concern is dependent upon its ability to continue to raise adequate financing, monetize it marketable securities holdings and to commence profitable operations in the future and repay its liabilities arising from normal business operations as they become due.
The Company’s core assets are the exploration rights to its mineral properties. These rights are held by means of claims located by staking and prospecting permits or leases issued by government departments for prospecting and exploration purposes. In several instances, the mineral rights may be held under Purchase Option Agreements. Such agreements typically require the Company to make cash payments and share issuances and to incur exploration expenditures on multiyear schedules, as set forth in each agreement.
Wilding Lake Property
On December 17, 2020, the Company acquired Teton Opportunities Inc. (“Teton”), a private company incorporated under the laws of British Columbia, Canada who holds an option agreement with Altius Resources Inc. (“Altius”) for the Wilding Lake Project (“Wilding Lake”) located in the Province of Newfoundland, Canada. The total purchase price of $2,042,533 was effected by way of share exchange whereby Canterra issued 9,677,250 Canterra shares and 4,398,750 Canterra warrants in exchange for all the issued and outstanding securities held by Teton shareholders.
In accordance with the terms of the Wilding Lake option agreement, the Company is required to:
- Issue Altius 12,500,000 Teton shares and warrants to acquire a further 6,250,000 Teton shares (issued on December 16, 2020 by Teton prior to acquisition);
- Complete a minimum financing for gross proceeds of $2,500,000 (completed by Canterra on December 17, 2020);
CANTERRA MINERALS CORPORATION
MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF…
Read More: Canterra Minerals : Q3-2021 MD&A