Bonterra active on $7.0 million financing news
Bonterra Resources Inc. [BTR-TSXV, BONXF-OTC, 9BR1-FSE] has announced details of a best-efforts private placement financing that is expected to raise $7.0 million.
On Friday, Bonterra shares were active on the news, easing 21.1% or $0.0554 to 20.5 cents. The shares trade in a 52-week range of 31.5 cents and 18.5 cents.
The company said it intends to use the proceeds from the offering to finance continuing operations for the next 12 months. Bonterra is a gold exploration company with a portfolio of advanced exploration assets anchored by a central milling facility in Quebec. They include the Gladiator, Barry, Moroy and Bachelor gold deposits which collectively host 1.24 million ounces in the measured and indicated category and 1.78 million ounces in the inferred category.
In November, 2023, Bonterra entered into a binding letter of agreement with Osisko Mining Inc. (a company that was acquired by Gold Fields Ltd. in August, 2024) for an exploration and earn-in deal covering key gold properties in Quebec’s Eeyou Istchee James Bay region.
Under the agreement, Osisko gained the right to acquire up to a 70% interest in the Pheonix joint venture (previously known as the Urban Barry property) by spending $30 million, with a minimum spend of $10 million per year over a three-year period.
In its latest press release, Bonterra said the private placement would consist of:
- Up to 20.4 million hard dollar units priced at 22 cents per HD unit.
- Up to 2.08 million flow-through units priced at 24 cents per flow-through unit.
- Up to 6.56 million premium flow-through units priced at 30.5 cents per FT unit.
The combination is expected to generate gross proceeds of $7.0 million.
The company has granted the underwriting agents an option to sell up to an additional 15% of the number of securities sold in connection with the offering. That option can be exercised in whole or in part at any time up to the closing date, and can be exercised for HD units, FT units or premium FT unit, or any combination thereof.
Each HD unit will consist of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to acquire one share at an exercise price of 30 cents for three years from the date of issuance. Each FT unit and premium FT unit will consist of one share and one half warrant, each of which will qualify as a flow-through share under the Income Tax Act (Canada). For certainty, the proceeds from the exercise of the warrants will not be flow-through eligible.
Completion of the offering is set to occur on June 30, 2025, or on a date that is agreed to by the company and the lead agent.