by Greg Klein | February 13, 2017
What started as a $6-million bought deal for BonTerra Resources TSXV:BTR has been raised three times—twice in one day—for gross proceeds of $13.97 million, in addition to a non-brokered $1.02 million.
The company first announced the bought deal at $6 million on February 6. Just one day later the amount increased to $9.39 million. The morning of February 13, the bought deal hit $12.9 million as BonTerra also announced the non-brokered private placement. Hours later the $12.9 million got a “final” increase to $13.97 million. Gross proceeds of both offers come to $14,999,600.
Acting as lead underwriter will be Sprott Capital Partners, a division of Sprott Private Wealth LP, along with underwriter INFOR Financial Inc. The news comes as BonTerra readies a third rig for its Gladiator drill campaign in Quebec’s Abitibi region.
The bought deal consists of 11 million flow-through shares at $0.35 and 36.16 million shares at $0.28. The non-brokered placement offers 3.66 million shares at $0.28. The parties anticipate closing by March 2.
On February 2 BonTerra released results from two holes drilled last year on Gladiator, which currently has two rigs busy and a third waiting to join in. Hole BA-16-47 intersected the project’s Main zone as well as a new zone south of the deposit, with highlights showing:
- 5.6 g/t gold over 1 metre, starting at 254 metres in downhole depth (Main zone)
- 2 g/t over 3 metres, starting at 376 metres (New zone)
BA-16-48 delivered these results:
- 14.9 g/t gold over 1 metre, starting at 358 metres (Footwall zone)
- 16.8 g/t over 3.8 metres, starting at 394 metres (Main zone)
True widths weren’t available.
Two days earlier the company released three intervals from this year’s first hole, with assays as high as 15.7 g/t over 8.5 metres. As the 25,000-metre program continues, BonTerra hopes to connect zones across a 1.2-kilometre potential strike.
A 2012 resource estimate used a 4 g/t cutoff to show an inferred 905,000 tonnes averaging 9.37 g/t for 273,000 ounces. An update could be completed this spring or summer.
BonTerra also holds the Larder Lake project in Ontario, which hosts two historic, non-43-101 deposits. The Bear Lake estimate came to 683,000 gold ounces inferred, while the Cheminis estimate showed 43,800 gold ounces indicated and 233,400 ounces inferred. With an additional 25,000 metres drilled by Gold Fields NYSE:GFI to consider, BonTerra has a new 43-101 in preparation.