Bonterra Resources Inc. [BTR-TSXV, BONXF-OTC, 9BR1-FSE] said it has entered into a binding letter of agreement with Osisko Mining Inc. [OSK-TSX] for an exploration and earn-in deal covering key gold properties in Quebec’s Eeyou Istchee James Bay region.
The earn-in and joint venture, which will be formalized when the parties execute a definitive exploration earn-in and joint venture agreement will provide the terms for the advancement of the properties through a $30 million investment by Osisko over three years.
The letter of agreement provides that subject to the execution of the definitive agreement, Osisko will have the ability to earn a 70% interest in the properties, which cover 22,508 hectares.
“Through this strategic partnership with Osisko, Bonterra is poised for an exciting new chapter in the development of our Urban-Barry property and the surrounding Duke and Lac Barry properties,’’ said Bonterra Executive Chairman Cesar Gonzalez.
Bonterra said the letter of agreement provides for the execution of a definitive agreement by October 31, 2023. Further details regarding the proposed joint venture will be included in a new released once the definitive agreement is signed.
The Urban-Barry property hosts the Gladiator and Barry gold deposits.
The Duke property is currently 70%-owned by Bonterra and 30% by Osisko, while the Lac Barry property is owned 85% by Bonterra and 15% by Gold Royalties Corp.
Importantly, the earn-in and joint venture agreement does not include the Bachelor-Desmaraisville property, which hosts the Bachelor Lake mill complex, where 10,000 metres of drilling is expected to be completed before the end of this year.
As a result of the agreement with Osisko, Bonterra will not proceed with a previously announced plan to raise to raise up to $5 million from a private placement financing.
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. In a news release on August 9, 2023, Bonterra said the Bachelor Mill cleanup process has recovered 630 ounces of gold to date, generating revenue of $1.6 million. Gold recovery effort continue at the mill and the company expects additional revenue in the coming months.
Bonterra said is has been working on an updated exploration program with the objective of testing the extension of mineral resources near the Barry, Gladiator and Bachelor deposits.
On September 22, 2023, Bonterra shares closed at 18 cents and currently trade in a 52-week range of 57 cents and 16 cents.