Bonterra BTR

BonTerra Resources (BTR.V) has announced it will raise C$5.2M in a private placement by issuing 14.86 million shares at C$0.35 per share. The only buyer of the stock is Kinross Gold (KGC, K.TO), which will subsequently own almost 10% of BonTerra’s share capital.

This is a very interesting step forward, as almost everyone expected Osisko Mining (OSK.TO) to consolidate the entire Gladiator-Windfall area. However, Osisko didn’t seem to be very interested lately, and Kinross’ involvement confirms the project definitely has its merits based on a technical perspective as well as the total exploration potential.

Bonterra BTR 2

BonTerra has also acquired the Trove property which is a direct extension to the southwest of the Gladiator project. BonTerra will pay a total of C$500,000 in cash, 3 million shares and will complete a minimum of C$1M in exploration expenditures within the next two years. Durango Ventures (DGO.V), the seller, will also retain a 2% NSR, of which 50% can be repurchased for C$1M.

The C$5.2M additional cash inflow will very likely boost the cash position towards C$20M (to be confirmed in the next financial statements) as the company closed a larger private placement in February.

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The author has a small long position in BonTerra Resources. Please read the disclaimer

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