VANCOUVER – Bonterra Resources has closed a bought deal financing work approximately $20 million with a syndicate of underwriters led by Sprott Capital Partners, a division of Sprott Private Wealth.
Bonterra issued 17.9 million flow-through shares prices at $0.84 each and 10 million common shares priced at $0.50 each. The underwriters received a cash fee equal to 6% of the gross proceeds of the offering.
The company has two advanced gold projects – Gladiator in the Urban-Barry Greenstone Belt in Quebec and Larder Lake near Virginiatown, Ont.
Core from the Gladiator property. (Credit: Bonterra Resources)
At the Gladiator project, the new South zone was discovered west of the main Gladiator deposit in June. Another new zone west of the Gladiator deposit intersected additional mineralization of the new North zone in May. In March, the company drilled near surface high grade zones including 5.0 metres at 23.6 g/t gold and 6.0 metres at 41.01 g/t at the Gladiator deposit. The most recent inferred resource for Gladiator was 905,000 tonnes grading 9.37 g/t gold and containing 273,000 oz.
The Larder Lake property – covering the Cheminis and Bear Lake deposits – was acquired from Kerr Mines in April 2016. A 330-metre-deep shaft and six levels were previously developed. The mine produced intermittently, and has historic 43-101 resources of 335,000 indicated tonnes grading 4.07 g/t gold and 5.1 million inferred tonnes at 5.55 g/t gold. The material may contain 43,800 oz. and 917,000 oz. of gold, respectively.
Maps and sections for both projects have been posted at www.BonterraResources.com.