pcNewsWire – Bonterra Resources Inc. (TSX-V: BTR; OTCPK: BONXF; FSE: 9BR1) has engaged Sprott Capital Partners as lead underwriter for a bought deal private placement of 11,905,000 flow-through common shares at $0.84 per FT share and 5,820,000 common shares at $0.50 per share for gross proceeds of $12,910,200.
The gross proceeds from the sale of the Flow-Through shares will be used to incur Canadian Exploration Expenses on the company’s properties. The net proceeds from the sale of the Common cshares will be used for general corporate and working capital purposes.
News Release
BONTERRA ANNOUNCES $ 12.9 MILLION BOUGHT DEAL FINANCING
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Vancouver, BC – June 9, 2017 – Bonterra Resources Inc. (TSX-V: BTR, US: BONXF, FSE: 9BR1) (the “Company” or “Bonterra”) is pleased to announce that it has entered into an agreement with Sprott Capital Partners to act as lead underwriter (the “Lead Underwriter”) and INFOR Financial Inc. (collectively, the “Underwriters”), in connection with a bought deal private placement to raise gross proceeds of $12,910,200 (the “Offering”).
The Offering will consist of a combination of (a) 11,905,000 flow-through common shares of the Company (“Flow-Through Shares”) at a price of $0.84 per Flow-Through Share and (b) 5,820,000 common shares of the Company (“Common Shares”) at a price of $0.50 per Common Share.
In connection with the Offering, the Underwriters will be entitled to a cash fee in an amount equal to 6.0% of the gross proceeds of the Offering, to be paid out of the non flow through portion of the Offering at closing.
The gross proceeds received by the Company from the sale of the Flow-Through Shares will be used to incur Canadian Exploration Expenses that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) on the Company’s properties, and also qualify for the two 10% enhancements under section 726.4.9 and section 726.4.17.1 of the Quebec Taxation Act, which expenses will be renounced to the subscribers with an effective date no later than December 31, 2017, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow-Through Shares. The net proceeds from the sale of the Common Shares will be used for general corporate and working capital purposes. All securities issued under the Offering will be subject to a four month hold period from the date of issue in accordance with applicable securities laws. The Offering is subject to acceptance of the TSX Venture Exchange.
The Offering is scheduled to close on June 29, 2017 or such other date or dates as the Company and the Lead Underwriter may agree.
ON BEHALF OF THE BOARD OF DIRECTORS,
Nav Dhaliwal, President & CEO
Bonterra Resources Inc.
Neither the 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.
