READ TIME: 7 MINUTES
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Magna Terra CEO Lewis Lawrick talks about the company’s strategy, financial position, exploration plans, and challenges. Lewis also talked about his background, his investment in the company, the team’s experience, and the rationale behind holding multiple assets across Atlantic Canada and Argentina. In addition, he explained Magna Terra’s financial situation, expected payments from option agreements, shareholder composition, and the impact of mining financier Michael Gentile’s involvement. Key risks, including market skepticism, capital constraints, and potential setbacks with partners like Newmont, are also addressed.
TL;DR
- Magna Terra is a junior exploration company focused on gold projects in Atlantic Canada and Argentina, with a mix of wholly owned assets and optioned properties.
- The company has secured option agreements with partners like Newmont and Gold Hunter, which could bring in over $10 million in payments over the next 15 months.
- Michael Gentile holds a significant stake in the company, signaling insider confidence in its potential.
- Magna Terra plans to advance its exploration projects in 2025, including airborne surveys, prospecting, and potential drilling.
- The company is hoping for a market revaluation, with catalysts including exploration results, option payments, and potential asset sales.
Who is Lewis Lawrick, and is he the right man for the job?
Lewis Lawrick, CEO of Magna Terra, has a background in investment banking and mining finance.
He co-founded a merchant bank in the early 2000s, which specialized in commodities and facilitated several exits in the mining sector. He was also a founder of Anaconda Mining, which became Signal Gold before merging with Nex Gold. According to Lawrick, he and his team think like owners and exit when transactions are favorable.
His track record includes dealing with difficult market conditions, permitting delays, and financing challenges. However, some of the projects he was involved in took over a decade to become profitable for investors.
Has Lewis Lawrick made money for speculators before?
According to Lawrick, Anaconda Mining faced numerous challenges, including permitting delays and financial struggles. The company initially focused on a small development in Newfoundland and a copper-gold project in Chile. Due to financial pressures, the Chilean assets were lost, and the focus shifted to the Newfoundland mine, which had an initial mine life of five to six years but operated for twelve.
Lawrick states that the company eventually became a successful investment as the gold price rose from $700 to nearly $2,000 per ounce. However, the success was not immediate, and investors who entered at different stages likely had varied experiences. The company’s later acquisition of the Goldboro project in Nova Scotia increased its resource base, but permitting and financial constraints ultimately led to a merger with Next Gold.
Does the team have enough experience?
Magna Terra’s technical team consists of Senior Geologist David Copeland and VP of Exploration Paul McNeil. According to Lawrick, they have over 40 years of combined experience in Atlantic Canada, specifically in the Appalachian geological terrain. He claims that Magna Terra has “probably the most experienced technical team within that geology.”
How much did Lewis Lawrick pay for his shares?
Lawrick owns just under 12% of Magna Terra.
He says his average cost is “well over 10 cents per share,” having participated in every financing and purchasing shares in the open market.
Lawrick states that Magna Terra is a significant investment in both his personal portfolio and his merchant banking firm. He emphasizes that his financial success is tied to the company’s performance. However, given the company’s struggles, it is unclear whether his stake will ultimately be profitable.
Additionally, Lawrick claims he will continue purchasing shares, citing what he sees as an undervaluation of the company. However, there is no binding commitment to buy, and whether he follows through will be seen in future SEDI filings.
Who’s buying or what’s causing the share price increase?
The recent increase in share price has been attributed to mining financier Michael Gentile purchasing a block of roughly 18 million shares that were previously held by Signal Gold. Lawrick told us that Gentile’s involvement has drawn investor interest. However, outside of this purchase, it is unclear if there is sustained institutional or retail buying interest.
Long term, Magna Terra’s stock has fallen from nearly 50 cents to a low of one cent. According to Lawrick, this was due to the company’s pivot from Argentina to Atlantic Canada, restructuring, and a challenging market environment. However, the company’s dilution, project setbacks, and inability to generate strong market interest also played a role.
What type of shareholders do they want to attract?
Lawrick states that he prefers “patient capital” from investors who understand mining cycles. He claims that many of Magna Terra’s long-term shareholders have followed him through multiple ventures. However, it remains to be seen whether new investors will buy into the company’s current valuation and strategy.
Do any of the executives or board members own a royalty on the projects?
According to Lewis, neither he nor any non-arms-length parties own royalties on Magna Terra’s projects. The company holds a portfolio of royalties from previous transactions, but these are not currently generating revenue.
Why own so many assets?
Magna Terra holds a diverse portfolio in Argentina and Atlantic Canada. In Argentina, Newmont has an earn-in agreement on the Bullador project, and Magna Terra is seeking buyers for other assets. In Atlantic Canada, the company has multiple exploration-stage gold projects. Lawrick claims that the company’s ability to hold multiple projects allows for flexibility, though it also spreads resources thin.
Why is the share price not higher now?
Despite expecting over $10 million in payments from agreements, Magna Terra’s market capitalization remains around $6.5 million. Lawrick attributes this to market skepticism, stating, “It’s not money until it’s in the bank.” Investors may be waiting for concrete financial results before re-rating the stock.
How do they plan to create value for stakeholders?
Magna Terra operates under what Lawrick describes as a “hybrid model”—advancing some projects internally while optioning others to partners. While this strategy can reduce capital expenditures, it also means the company is reliant on external parties for progress.
Lawrick mentions Altius Minerals as an inspiration due to its mix of exploration, royalties, and project sales. However, Magna Terra is not a royalty company and does not have a proven track record of generating significant revenue from this model.
Will they be going after royalties?
Magna Terra retains a 2% NSR on Boleadora and other royalties but is not actively pursuing a royalty-collection business model. The company’s royalties are not currently generating cash flow.
However, Lawrick states that the company is open to spinning out its Argentine or New Brunswick assets into separate companies. However, he acknowledges that market conditions would need to improve before such a move would be viable.
How much money do they have and what’s the 2025 budget?
Current cash is around $500,000, with $3.5 million expected from option payments in mid-2025. Exploration will focus on the Humber and Rocky Brook projects, but drilling is contingent on results from ongoing data compilation.
In addition to that, Magna Terra holds 7 million shares of Gold Hunter and expects additional stock in June 2025. Lawrick states that the company will coordinate any sales to avoid market pressure, but there is no guarantee these shares will maintain value.
How much are they budgeting for G&A?
The company’s operating expenses over the last-reported 6-month period were about 80,000 CAD. Lawrick told us he’s not expecting that number to go up drastuically over the near term.
What are they doing to market the story?
Magna Terra has had minimal marketing in recent years but plans to increase its digital presence. The company is considering hiring external assistance but remains cautious about marketing expenditures.
What are the main risks for Magna Terra?
Key risks include:
- Newmont potentially walking away from the Boleadora project.
- The company’s ability to raise capital if needed.
- Market skepticism about asset valuations.
- Execution risk in exploration and permitting.
Magna Terra CEO Interview With Lewis Lawrick
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