Magna Terra Acquires 100% Interest in Three Epithermal Gold-Silver Projects in Santa Cruz Province, Argentina

Magna Terra Minerals Inc. has acquired a 100% interest in three epithermal gold-silver projects in Santa Cruz Province, Argentina: Cerro Covadonga, El Meridiano, and La Rosita. The acquisition covers approximately 79,000 hectares and was structured to eliminate an existing 2% Net Smelter Royalty (NSR) on each project. Consideration consists of a nominal US$25,000 cash payment and the issuance of 1,250,000 common shares. Shares are subject to a four-month-and-one-day regulatory hold period and require TSX Venture Exchange approval.

The transaction terminates an underlying Option Agreement, saving the company from outstanding cash payments totaling US$290,000. CEO Lew Lawrick highlighted that the move preserves hard-dollar cash and removes the NSR burden. The company is evaluating value realization strategies, including a potential spin-out of these Argentine assets into a stand-alone vehicle for listing on a Canadian exchange.

This release follows a series of exploration updates and a $3.75 million financing closed on September 22, 2026. Historically, the company has been advancing a district-scale portfolio across Atlantic Canada and Argentina, with Argentina assets previously optioned to partners like Lunex Metals and Andean Metals. The acquisition finalizes control over these specific properties, aligning with the company's strategy to consolidate and monetize its deep project pipeline.

Magna Terra Minerals Inc. (MTT) has eliminated the 2% net smelter return (NSR) on three projects, a move that removes a recurring revenue leak and improves the long-term economics of its Argentine portfolio. This change eliminates a financial burden that would have impacted any future royalty or joint venture monetization. The company also addressed the dilutive effect of 1,250,000 shares, which represents approximately 1.15% of the current 108.36 million share count. This dilution is considered manageable and is offset by the $3.75 million financing closed two days prior.

The transaction highlights efficient capital preservation, with a nominal US$25,000 cash outlay versus the avoided US$290,000 in option cash payments. Market reaction has been measured, as the stock was already trading near its 52-week high of $0.27, suggesting the progression of the Argentine option agreements had been priced in. The announcement serves as a logical follow-through on previously disclosed option terms rather than a surprise discovery or partnership. While the potential spin-out thesis adds an optionality premium, the immediate market impact remains incremental until a concrete vehicle or listing date is announced.

Magna Terra Minerals Inc. (MTT) is a district-scale exploration company focused on early-stage gold, silver, copper, and cobalt projects in Newfoundland, New Brunswick, and Argentina. The company operates entirely in the exploration phase with no production or defined reserves. Management emphasizes a strategy of acquiring large, low-cost land packages in premier jurisdictions and advancing them through systematic exploration, geophysics, and partnership monetization.

The company’s flagship Humber Copper-Cobalt Project in Newfoundland is a 49,925-hectare district-scale property featuring the Birch Zone, a 4.2-kilometre strike length of copper-cobalt mineralization. The project is analogous to global Sediment-Hosted Stratiform Copper (SSC) deposits. In New Brunswick, the Rocky Brook Project is located in the prolific Bathurst Mining Camp, covering over 34,000 hectares with multiple VMS and gold targets, including the Fossil Hill Zone and Restigouche Trend.

The company’s Argentina portfolio includes the optioned Luna Roja project and the newly acquired 100%-owned Cerro Covadonga, El Meridiano, and La Rosita projects, totaling approximately 100,000 hectares in the Deseado Massif.