Bonterra arranges $25 million placement deal

The Gladitaor gold deposit in the Urban-Barry Camp of northwestern Quebec. Source: BonTerra Resources Inc.

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Bonterra Resources Inc. [BTR-TSXV, BONXF-OTC, 9BR1-FSE] said Thursday it is raising $25 million from a private placement of flow-through and common shares.

It said the private placement is expected to consist of 7.29 million common shares that qualify as flow-through shares priced at $2.06 each, for gross proceeds of $15.01 million, as well as 8.27 million common shares (Hard Dollar shares) priced a $1.21 each, raising an additional $10 million.

The underwriting syndicate has the option to offer up an additional 2.33 million common and flow-through shares at the respective issue prices. That option can be exercised at any time up to 48 hours prior to closing, which is expected to occur on March 10, 2022.

The company said proceeds from the HD common shares will be used for working capital and general corporate purposes. While proceeds from the placement of flow-through shares will fund exploration on the company’s Quebec properties.

On February 16, 2022, Bonterra shares closed at $1.38 and currently trade in a 52-week range of $1.54 and 94 cents.

Bonterra is a gold exploration and development company with a focus on the Urban Barry mining camp in Quebec, where the company has rights to more than 38,000 hectares.

The company has four main assets, Gladiator, Moroy, Barry and Bachelor that collectively have a total of 1.24 million ounces of gold in the measured and indicated categories and 1.78 million ounces in the inferred category.

Bonterra owns the only permitted and operational gold mill in the region that is currently estimated at 75% through the permitting process to expand from 800 tonnes per day to 2,400 tonnes. It is focused on graduating from advanced exploration to a development company over the next 18 to 24 months.

The company recently released new exploration results from a regional drilling campaign on the Moss property, which is also located in the Urban Barry mining camp. The Moss property is part of a basket of assets in Quebec that Bonterra acquired when it snapped up Metanor Resources Inc. two years ago in a $78 million deal.

In a press release in early January, 2022, Bonterra said it has drilled 16 holes representing a total of 6,990 metres at Moss since September, 2021. Partial results from 12 drill holes have been received so far. Results from the remaining four holes are pending.

Recent exploration drilling has targeted the expansion of existing gold mineralization interpreted to trend northeast from some key historic high-grade intersections in the Moss Center and Moss East areas. Mineralization at Moss consists of a system of sub-parallel mineralized veins trending northeast identified along a span of approximately 3.0 kilometres and remains open along strike and at depth.

The Moss mineralized trend is subdivided into three areas: Moss West, Moss Center and Moss East.


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