Bonterra announces $10 Million private placement
Bonterra Resources Inc. has announced a non-brokered private placement of up to $10 million from the sale of common shares of the company at a price of $1.15 per share.
The net proceeds of the offering will be used to fund drilling campaigns at Bonterra's Moroy, Gladiator and Barry projects in to prepare a resource estimate update and a Preliminary Economic Assessment ("PEA") on these three projects and for general working capital purposes. The PEA is expected to be completed in the fall of 2021.
The company may elect to increase the size of the offering by issuing additional Common Shares. In addition, the company may pay finders' fees in connection with the Offering.
Certain insiders of the Company may participate in the Offering. The participation of Insiders in the Offering will constitute a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company anticipates relying on the exemptions from the formal valuation and minority approval requirements in Sections 5.5.(a) and 5.7(1)(a) of MI 61-101, on the basis that the fair market value of the related party transactions does not exceed 25% of the Company's market capitalization.
Along with a total of 124,000 m drilled since the 2019 resource estimates on the Moroy, Gladiator and Barry projects as well as the bulk sample at Moroy, the Company expects these initiatives to help demonstrate the value of the Company's assets.
The Common Shares to be issued under the Offering will be subject to a hold period of four months and one day from the date of issue in accordance with applicable securities laws. The Offering is subject to approval of the TSX Venture Exchange.
Corporate Change
Bonterra's board of directors are pleased to announce that Pascal Hamelin has been promoted to the position of President and Chief Executive Officer, effective immediately. Mr. Hamelin has been acting as interim Chief Executive Officer since June 2020. Cesar Gonzalez, Chairman of Bonterra commented: "Our unanimous support for Pascal comes after the completion of a search process that started in April 2020. Pascal has worked within the Company and its predecessors in many capacities for over 10 years, has invaluable knowledge of the Company's assets. He has longstanding relationships with employees, stakeholders, first nations groups and the Quebec Government. He has recently demonstrated his leadership abilities in advancing the Company through its exploration program, bulk sample and day-to-day operations. We look forward to Bonterra's future under Pascal's continued leadership as the Company moves toward a PEA in 2021, which is a major milestone in demonstrating the production potential of the Company's assets."
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