Bonterra raising $3M to $5M in private placement

Bonterra Resources Inc. has entered into an agreement with Cormark Securities Inc. to act as sole agent (the "Agent") in connection with a "best efforts" private placement of a minimum of 17,647,100 units of the Company ("Units") and a maximum of 29,411,764 Units at a price of $0.17 per Unit (the "Issue Price") for minimum gross proceeds of $3,000,007 and maximum gross proceeds of $5,000,000, pursuant to the listed issuer financing exemption available under National Instrument 45-106 - Prospectus Exemptions (the "LIFE Offering") or the "accredited investor" exemption under National Instrument 45-106 - Prospectus Exemptions (the "Private Placement Offering" and together with the LIFE Offering, the "Offering"). Each Unit will consist of one common share of the Company (a "Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Share at an exercise price of $0.24 for a period of two years from the date of issuance. 

There is an offering document relating to the LIFE Offering (the "Offering Document") that can be accessed under the Company's profile at www.sedarplus.ca and www.btrgold.com. Prospective investors in the LIFE Offering should read the Offering Document before making an investment decision.

The Company has agreed to pay the Agent a cash commission equal to 6.0% of the gross proceeds of the Offering, with such fee being reduced to a cash commission equal to 2% with respect to subscriptions made by persons delivered to the Agent by the Company (the "President's List"). The Company will also issue to the Agent non-transferable broker warrants equal to 6.0% of the aggregate number of Units issued by the Company under the Offerings, each of which will entitle the holder thereof to acquire one Share at $0.24 for a period of two (2) years from the date of issuance. 

The Offerings may be completed in one or more closings with the first closing currently scheduled for on or around September 21, 2023 (the "Closing Date"). Closing of the Offerings is subject to certain customary conditions including receipt of all necessary approvals including satisfaction of listing conditions of the TSX Venture Exchange. The Shares issued pursuant to the LIFE Offering will not be subject to any hold periods pursuant to applicable Canadian securities laws. The Shares issued pursuant to the Private Placement Offering will be subject to a four month hold period under applicable Canadian securities laws.

The Company intends to use the net proceeds from the Offering, together with the Company's current working capital, and revenue to be generated from the sale of gold from the Bachelor Mill clean up process, to complete a 13,000 metre drill program before the end of 2023, fund its closure bond commitment for the Bachelor Mill and Barry deposit, and fund ongoing operations for the next 12 months, all as further detailed in the Offering Document.

Tags: Quebec / Deals & Financial / Gold / All Articles