Proactive Investors - Run By Investors For Investors

Bonterra Resources set to raise up to $30 million

The company said the placement will consist of a mix of flow-through funds and non-flow-through funds
gold mine
Bonterra has been advancing its gold projects in Quebec, which include the Gladiator, Barry and Moroy deposits

Bonterra Resources Inc (CVE:BTR) (OTCMKTS:BONXF) said Thursday it will raise up to C$30 million in a private placement. 

According to the company, Sprott Capital Partners LP will act as lead agent. 

Bonterra has been advancing its gold projects in Quebec, which include the Gladiator, Barry and Moroy deposits. It also has 100% ownership of the Urban-Barry Mill, the only permitted gold mill in the region.

READ: Bonterra Resources unveils high grade drill results from Moroy zone

The company said the placement will consist of a mix of flow-through funds and non-flow-through funds.

The offering will consist of the sale of 1.87 million flow-through shares at C$2.67 per share. The gross proceeds from the issuance will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as defined by Canada’s Income Act. A flow-through vehicle passes income to investors to avoid double taxation.

The non-flow-through placement will consist of the sale of 12.8 non-flow-through shares at a price of C$1.95 per share. Funds raised will be used for on-going exploration and development work on Bonterra's projects and for general corporate purposes.

The company also said it has granted an option to increase the size of the offering by up to 20%, which can be exercised at any time up to three days prior to the close, which is expected on or about March 15, 2019. 

All securities issued under the placement will be subject to a four-month hold period from the date of issue in compliance with applicable securities laws. The placement is subject to final acceptance of the TSX Venture Exchange.

Shares of Bonterra were at C$1.94 on Thursday. 

Contact Katie Lewis at [email protected]

View full BTR profile View Profile

Bonterra Resources Timeline

Related Articles

1556112129_Scotgold---Richard-Gray-at-Tyndrum.jpg
April 24 2019
Scotgold will pour its first gold at Cononish before the year end
gold
June 13 2019
The company is currently exploring and developing one million ounce Salinbas Gold Project in north-eastern Turkey
1556632618_shutterstock_249210421-(1).jpg
May 01 2019
Anglo Asian has built a successful track record of production, and is now ramping up exploration

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use