viewBonterra Resources Inc.

Bonterra Resources boosts financing to C$32 million for Quebec exploration

The financing is being led by leading investment firm Sprott Capital Partners

Bonterra Resources - Bonterra Resources  boosts financing to C$32 million for Quebec exploration
Bonterra upped its previously announced C$27 million placement to C$32 million

Bonterra Resources Inc (CVE:BTR) (OTCMKTS:BONXF) announced Tuesday that it is boosting its previously announced financing to C$32 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.

READ: Bonterra to raise C$27 million in Sprott-backed financing

The upsized placement will see the explorer issuing up to 7.4 million units priced at C$2.50 for gross proceeds of nearly C$18.5 million. An additional 2.2 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$6.5 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 for two years from the closing date at C$3.10.

Securities will be subject to a hold period of four months and one day from the date of issue.

The offering is expected to close on or before August 20, 2019.

Bonterra’s shares were trading 1.3% higher at C$2.43 in Toronto at Tuesday’s market close but lost 4.2% on the OTC Markets to reach US$1.84.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Quick facts: Bonterra Resources Inc.

Price: 1.38 CAD

Market: TSX-V
Market Cap: $106.96 m

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