Mr. Nav Dhaliwal reports
BONTERRA RESOURCES ANNOUNCES CLOSING OF $21.5 MILLION PRIVATE PLACEMENT
Bonterra Resources Inc. has closed its previously announced brokered private placement for gross proceeds of $21,495,000. Sprott Capital Partners acted as lead agent on behalf of a syndicate of agents which included INFOR Financial Inc., Red Cloud Klondike Strike Inc., Laurentian Bank Securities Inc. and PI Financial Corp.
Pursuant to the offering, Bonterra issued 13.3 million common shares of the company on a flow-through basis at a price of 75 cents per super-FT share and 19.2 million common shares of the company on a flow-through basisat a price of 60 cents per national FT share. Collectively the super-FT shares and national FT shares are the offered securities.
The gross proceeds from the issuance of the offered securities 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 super-FT shares will also qualify for the two 10-per-cent enhancements under Section 726.4.9 and Section 726.4.17.1 of the Quebec Taxation Act, which will be renounced with an effective date no later than Dec. 31, 2018, to the initial purchasers of the offered securities in an aggregate amount not less than the gross proceeds raised.
In connection with the offering, the agents received a cash fee in an amount equal to 6.0 per cent of the gross proceeds of the offering. As additional consideration, the company granted to the agents common share purchase warrants entitling the agents to subscribe for that number of common shares equal to 4.0 per cent of the aggregate number of offered securities placed in the offering. Each brokers warrant is exercisable to acquire one common share at a price equal to 60 cents for a period of 24 months after the closing date. 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 final acceptance of the TSX Venture Exchange.
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