Tectonic Metals (TSXV: TECT, OTCQB: TETOF, FRA: T15B) is a mineral exploration company focused on Alaskan properties. The company has a solid balance sheet with the recent private placement closed, and its three properties in Alaska, USA, could deliver significant value. Up +170% over the last six months, Tectonic Metals has already delivered a strong return on investment, but the stock price’s ascension can go higher.

Company Overview

Tectonic Metals (TSXV: TECT, OTCQB: TETOF, FRA: T15B) is a mineral exploration company created and operated by an experienced and well-respected technical and financial team with a track record of wealth creation for shareholders. The company owns four projects, all located in Alaska, USA. Tectonic partnered with Doyon, one of Alaska’s most prominent Native Regional Corporations. It is the largest private landholder in Alaska and one of the largest in the USA, with 12.5M acres of land selected primarily from a mineral perspective. Doyon has over 20,000 shareholders and a 20-year history of mineral, oil, and gas exploration agreements with junior and senior companies. Thanks to this partnership, Tectonic received a strategic $2M investment from Doyon, and Doyon became Tectonic’s largest single shareholder with a 22.3%  (now 12%) ownership.

Tibbs project

The Tibbs project is located in the Goodpaster Mining District, 175Km South-East of Fairbanks, Alaska. The property comprises 168 claims covering 13,480 acres, with at least 17 known target areas and historic lode gold (Au) production in three locations. In 2019, Tectonic completed a 2,184-metre Rotary Air Blast (RAB) drilling campaign at Tibbs, testing nine priority targets, including those generated during the previous exploration seasons. In 2020, Tectonic completed 3,202 meters (“m”) of RAB drilling in 27 holes at its Tibbs Gold Project (“Tibbs”) over a three-week period

beginning in mid-July. Drilling was focused on stepping out from a 2019 RAB intercept of 6.03 grams per tonne gold (“g/t Au”) over 28.95m at the Michigan zone and testing similar northeast-trending structural corridors at the Lower Trench and Wolverine targets.

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Seventymile project

The Seventymile property is contained with land wholly held by Doyon. In the summer of 2020, Tectonic completed a 2,587m drilling campaign exploring 26 holes. Mineralization was intercepted, including 2.07 g/t Au over 6.10m (Flume-Bonanza Zone), 1.37 g/t Au over 19.81m (Bonanza Zone), and 1.20 g/t Au over 4.57m (Flanders Zone). All the holes intersected anomalous gold mineralization.

Flat project

The Flat project has two main target areas, the Chicken Mountain and Black Creek/Golden Horn. The Chicken Mountain intersected quartz monzonite intrusion, which appears to have been the major source of placer gold. About the Black Creek/Golden Horn, mineralization is contained within northeast striking steeply dipping, intrusion-hosted sheeted sub parallel veins. The Flat area represents one of Alaska’s best examples of a direct, preserved bedrock source of mineralization for surrounding placer deposits. Placer gold is found within all the creeks that drain the Chicken Mountain – Black Creek complex, with the Flat area producing over 1.4 Moz of placer Au throughout a protracted history of placer mining. The company has recently completed its 2022 inaugural field program at the Flat project to gain a better understanding of the geological opportunity. Tectonic will conduct additional reconnaissance to further assess the surficial conditions on the property and investigate accessibility/navigability on existing infrastructure.

Maple Leaf project

The Maple Leaf project returned historic values ranging to 19.1 g/t Au with associated bismuth, arsenic, and tellurium, similar to the operating Pogo and Fort Know gold mines.Staked in the summer of 2020, the project is located adjacent to the Black Mountain Tectonic Zone, the same structural trend that hosts the Tibbs project and Northern Star’s Bring gold prospect. Also, prospecting work undertaken in the summer included grab samples of biotit quartz monzonite with sheeted quart veining which return gold value from trace to 2.95 g/t Au.

Financials/Share Structure

239M shares are issued and outstanding, with a total of 343M shares fully diluted. The company doesn’t have an issue raising money. Over the last two years, the company raised more than $12M:

-2021: $7.1M @ $0.10 per unit ((1 half 2-yr warrant at $0.17 expiring June 2023);

-2022: C$2,300,000 @ $0.06 Unit (1 half 2-yr warrant at $0.10 expiring July 2024)

-2022: C$3,100,900 @$0.08 Unit (1 Full 2-yr warrant at $0.12 expiring November 2024)

Added to these warrants, the company has 5.3M options at a weighted average price of $0.14. The company currently has a strong balance sheet with $3M in cash for no debt, and Tectonic has a strong supportive shareholder team. The Tectonic team holds 11%, Doyon owns 12% (14% partially diluted), 19.5% is possessed by Crescat Capital (22.6% partially diluted), and other resource funds detain 16% (Gold 2000, RCF, Mackenzie, etc.).

The company had a high data of expenses, topping $1.7M. It comes from the fact that Tectonic Metals spent $1.2M in exploration. Tectonic’s share price is traded above $0.15 for a +$40M valuation. After witnessing a 52-week low of $0.04, the stock price gained strong momentum to reach its 52-week high of $0.17.

Bottom Line

Tectonic Metals (TSXV: TECT, OTCQB: TETOF, FRA: T15B) caught a lot of attention, and for many reasons. With a strong balance sheet that includes $3M for no debt, and the recent field program completion, the company could deliver more value to shareholders thanks to strong fundamentals and attractive assets.

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