Bonterra Resources Inc (CVE:BTR) announced Monday that it has closed a $36.7 million private placement for exploration work on its portfolio of projects in Canada.
As part of the offering, the junior gold miner issued 14,359,000 common shares in the company at $1.95 per share as well as an additional 3,273,800 shares on a flow-through basis at $2.67 per share.
Shares of Bonterra were up 1% to reach $2 in Canadian trading.
Flow-through shares are a unique financing vehicle for junior resource companies in Canada, allowing investors to receive tax incentives.
Proceeds from Bonterra’s flow-through shares will be used for exploration, in accordance with the Income Tax Act (Canada).
Bonterra has a number of exploration and mining assets including the Gladiator, Barry and Moroy deposits in Quebec, as well as the only permitted gold mill in the surrounding region.
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