Bonterra Resources Inc (CVE:BTR) (OTCMKTS:BONXF) announced Friday that it is planning to raise up to C$27 million to fund ongoing exploration at the company’s Quebec gold projects.
The offering is backed by Sprott Capital Partners as lead agent in the financing.
Val-d’Or, Quebec-based Bonterra’s key assets are in the Urban-Barry greenstone belt in the mineral-rich province of Quebec. In addition to Gladiator and Barry, the exploration company owns the high-grade Moroy gold project in the mining camp.
The explorer will issue six million common shares priced at C$2.50 for gross proceeds of C$15 million. An additional 1.7 million flow through shares are priced at C$3 and 1.6 million super flow through shares at C$4.30 are also on offer.
The flow through and super flow through shares on issue will net the company C$5 million and C$7 million respectively.
Unique to Canada, flow through shares allow shareholders to access tax incentives in return for investing in resource companies. Regular flow through financing allows investors a 100% deduction, while super flow-throughs give investors an extra 10% tax credit.
Each unit consists of one common share of the company and one-half of one common share purchase warrant, which is exercisable at C$3.10.
Bonterra has also granted Sprott the option to increase the size of the offering by 15% prior to the offering’s expected closing fate of August 20, 2019.
Securities will be subject to a hold period of four months and one day from the date of issue.
Bonterra’s shares were trading 0.4% higher in Toronto on Friday morning at C$2.49 and 2.1% higher on the OTC Markets at US$1.94.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas