AuTECO Minerals Ltd (ASX:AUT, OTC:MNXMF) has maintained a buy recommendation with a revised price target of A$0.08 from Shaw and Partners.
The analyst's price target is based on the assumption that the company will grow its gold and copper resource base by 50% and 100% respectively over the next 12 months.
In this light, the company has confirmed that its bid to acquire the Green Bay Copper-Gold Project in Newfoundland, Canada for A$65 million, has been approved.
This project will diversify its commodity base and position the company as a leading high-grade copper-gold explorer and developer in North America.
AUT is currently trading on the ASX at A$0.031 with a market cap of A$82.45 million.
Read: AuTECO Minerals gets green light to acquire Canadian copper-gold project
New tenure
Green Bay comprises numerous assets, including the fully operational Ming underground mine, the Little Deer exploration project, Nugget Pond processing plant and a concentrate storage facility at Goodyear’s Cove port.
Upon completion of the acquisition, the company intends to implement its growth strategy, headlined by an extensive underground drilling campaign and the development of a 700-metre exploration drive.
The company’s initial focus is to grow the resource before potentially coming into production later in the decade in an environment of surging Copper demand from the energy transition and constrained supply.