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Bonterra announces increase of previously announced placement to $15 Million

Dec 4, 2020

Bonterra Resources Inc. has increased the size of the previously announced non-brokered private placement to $15 million from the sale of common shares of the company at a price of $1.15 per Common Share.

The net proceeds of the offering will be used to fund drilling campaigns at Bonterra's Moroy, Gladiator and Barry projects and 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. 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 company may further 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. This Offering is expected to close within the next 10 days.

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.


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