Underground at the Bachelor gold mine. (Image: Metanor Resources)
QUEBEC – Bonterra Resources of Vancouver and Metanor Resources of Val d’Or, Que., have signed a letter of intent to merge the two companies to create a new gold exploration and development company with assets in the Urban Barry gold camp.
Bonterra is offering to acquire all the common shares of Metanor for $0.73 at an exchange ratio of 1.6039 Bonterra shares for each Metanor share. Bonterra will spin out its properties in Larder Lake, Ont., prior to the closing of the merger.
Combining the two companies will create the largest continuous land package in the camp. The holdings include three advanced high grade gold deposits – Gladiator, Barry and Bachelor. The Bachelor mine is also the site of the only permitted gold plant in the camp.
Bonterra says its upcoming 43-101 study for the Gladiator gold deposit remains on track for the last half of this year. Having access to the Bachelor mill will reduce the capital requirement to put that deposit into production.
Watch for details of the transaction to be posted at www.BonterraResources.com and www.Metanor.ca.