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VAL-D'OR, QC, March 15, 2021 /CNW/ - Bonterra Resources
Inc. (TSXV: BTR) (OTCQX: BONXF) (FSE:
9BR2) ("Bonterra" or the "Company") is
pleased to announce that, in connection with its previously
announced "best efforts" private placement financing, the Company
and a syndicate of agents led by Cormark Securities Inc.
(collectively, the "Agents"), have agreed to increase the
size of the offering. Under the revised terms of the
offering, the Company has agreed to issue 9,030,000 common shares
of the Company on a flow-through basis (the "FT Shares") for
gross proceeds of $13,003,200 at a
price of $1.44 per FT Share and
2,000,000 common shares of the Company (the "Common Shares")
for gross proceeds of $2,100,000 at a
price of $1.05 per Common Share (the
"Offering").
The Company and the Agents have also agreed to increase the
option granted to the Agents (the "Agents' Option"),
exercisable in whole or in part at any time up to 48 hours prior to
closing of the Offering, which will allow the Agents to sell up to
an additional 1,390,000 FT Shares and up to an additional 350,000
Common Shares, in each case, on the same terms as the Offering.
The gross proceeds from the issuance of the FT Shares will
be used for Canadian exploration expenses and will qualify as
"flow-through mining expenditures", as defined in subsection 127(9)
of the Income Tax Act (Canada)
(the "Qualifying Expenditures"), which will be incurred on or
before December 31, 2022 and
renounced to the subscribers with an effective date no later than
December 31, 2021 in an aggregate
amount not less than the gross proceeds raised from the issue of
the Offered Securities, as applicable, and, if the Qualifying
Expenditures are reduced by the Canada Revenue Agency, the Company
will indemnify each FT Share subscriber for any additional taxes
payable by such subscriber as a result of the Company's failure to
renounce the Qualifying Expenditures as agreed.
The net proceeds from the issuance of the Common Shares will be
used for working capital and general corporate purposes.
The Offering is expected to close on or about April 7, 2021 and is subject to certain closing
conditions including, but not limited to, the receipt of all
necessary approvals, including the acceptance of the TSX Venture
Exchange. The Offering is being made by way of private placement in
Canada. The securities
issued under the Offering will be subject to a hold period in
Canada expiring four months and
one day from the closing date of the Offering.
About Bonterra Resources Inc.
Bonterra is a Canadian gold exploration company with a large
portfolio of advanced exploration assets anchored by a central
milling facility in Quebec,
Canada. The Company has three main assets, Gladiator, Barry,
and Moroy, that collectively have a total of 698 thousand ounces in
measured & indicated categories, and 1.4 million ounces in
inferred category. Approximately 130,000 metres of drilling will be
used to update this resource shortly. Importantly, the Company owns
the only permitted and operational gold mill in the region that is
currently two-thirds the way through the permitting process to
expand from 800 to 2,400 tonnes-per-day. Bonterra is focused on
graduating from advanced exploration to a development company over
the next 18-months to deliver shareholder value.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary and Forward-Looking Statements
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act") or any state securities laws and may not
be offered or sold within the United
States or to, or for account or benefit of, U.S. Persons (as
defined in Regulation S under the 1933 Act) unless registered under
the 1933 Act and applicable state securities laws, or an exemption
from such registration requirements is available.
This news release includes certain forward-looking statements
concerning the use of proceeds of the Offering, the future
performance of our business, its operations and its financial
performance and condition, as well as management's objectives,
strategies, beliefs and intentions. Forward-looking statements are
frequently identified by such words as "may", "will", "plan",
"expect", "anticipate", "estimate", "intend" and similar words
referring to future events and results. Forward-looking statements
are based on the current opinions and expectations of management.
All forward-looking information is inherently uncertain and subject
to a variety of assumptions, risks and uncertainties, including the
speculative nature of mineral exploration and development,
fluctuating commodity prices, the future tax treatment of the FT
Shares, competitive risks and the availability of financing, as
described in more detail in our recent securities filings available
at www.sedar.com. Actual events or results may differ materially
from those projected in the forward-looking statements and we
caution against placing undue reliance thereon. We assume no
obligation to revise or update these forward-looking statements
except as required by applicable law.
SOURCE Bonterra Resources Inc.
