Bonterra raising $27 million for Urban Barry Camp

Bonterra’s Urban Barry mill near the Moroy Project in western Quebec. Source: Bonterra Resources Inc.

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Bonterra Resources Inc. [BTR-TSXV; BONXF-OTC; 9BR1-FSE] said Friday July 26 that it is raising $27 million from a private placement financing to fund exploration and development work on its Quebec properties.

The company said it has entered into an agreement with Sprott Capital Partners LP, which has pledged to act as lead agent on its own behalf and on behalf of an underwriting syndicate. Bonterra said the offering will consist of a combination of six million units priced at $2.50 per unit, raising gross proceeds of $15 million; and 1.7 million flow through units priced at $3 per unit for gross proceeds of $5 million. The offering will also consist of 1.62 million super flow-through units priced at $4.30 per unit for gross proceeds of $7 million.

Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will be transferable and entitle the holder to acquire one common share of the company for two years from the closing date at $3.10.

Each flow-through unit will consist of one common share of the company issued on a flow-through basis and one-half of one warrant.

Each super flow-through unit will consist of one common share of the company issued on a flow-through basis and one-half of one warrant.

On Friday, Bonterra shares eased 0.81% or $0.02 to $2.46 on light volume. The shares trade in a 52-week range of $1.46 and $4.90.

When Bonterra snapped up Metanor Resources Inc. last year in a $78 million deal, the plan was to create a new gold exploration and development company with a focus on Quebec’s Urban Barry mining camp.

By attaining control of three advanced high-grade gold deposits (Gladiator, Moroy and Barry) and the only permitted gold mill in the region, Bonterra believed it was placing the combined company in an excellent position to rapidly and cost-effectively become a significant Quebec-based gold producer.

After closing the deal in September, 2018, Bonterra said it was planning to accelerate the Gladiator, Moroy and Barry deposits while expanding the capacity of the Urban Barry mill. (The Moroy deposit is located on the property that also contains the Urban Barry mill).

In press release on October 10, 2018, Bonterra said it plans to increase the capacity of the mill from 800 tonnes per day (tpd) to 2,400 tpd. Construction related to the mill expansion was expected to be completed in 2019, allowing a shortened timeline to production for the three gold deposits. The budget for this project was US$13 million.

In a May 28, 2019 press release, the company announced the results of a recently completed NI 43-101-compliant mineral resource estimate for the Gladiator, Barry and Moroy deposits. It said estimates for Gladiator include an indicated resource of 202,000 ounces of gold, grading 8.46 g/t, plus an inferred resource of 897,000 ounces of gold, grading 9.10 g/t.

Barry is estimated to host an indicated resource of 385,000 ounces of gold, grading 5.84 g/t, plus 453,000 ounces of inferred material, grading 5.14 g/t. Moroy is estimated to host an indicated resource of 56,000 ounces, grading 4.77 g/t, plus an inferred resource of 55,000 ounces, grading 4.32 g/t gold.

In a press release on July 22, 2019, Bonterra said its summer drill campaign on the Urban Barry Camp continues with two drill rigs at Moroy, one at Barry and one at Gladiator. BonTerra said it will shortly mobilize an additional mobile heli-portable diamond drill rig to drill test regional exploration targets on the Gladiator Project.


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