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

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.

READ: Bonterra Resources hits high-grade gold at Quebec projects

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]

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Story by ProactiveInvestors