Bonterra Resources Inc (CVE:BTR) (OTCMKTS:BONXF) announced Tuesday that it has closed its C$32 million private placement to fund ongoing exploration and development at the company’s Quebec gold projects.
The offering was backed by Sprott Capital Partners as lead agent in the financing.
Bonterra has been advancing its gold projects in Quebec, which include the Gladiator, Barry and Moroy deposits as well as significant regional targets. It also has 100% ownership of the Urban-Barry Mill, the only permitted gold mill in the region.
The company said the placement consists of a mix of flow-through funds and non-flow-through funds.
The explorer issued 7.4 million common shares priced at C$2.50 for gross proceeds of C$18.5 million. An additional 2.2 million flow-through shares were priced at C$3 for gross proceeds of C$6.5 million and 1.6 super flow-through shares at C$4.30, raising C$7 million.
In 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.
Funds raised will be used for on-going exploration and development work on Bonterra's projects and for general corporate purposes. The offering is subject to final approval of the TSX Venture Exchange.
Shares of Bonterra were up 1.4% at C$2.21 in Toronto on Tuesday.
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