The company issued 7.4 million $2.50 shares for gross proceeds of $18.5 million, 2.2 million flow-through units at $3 each ($6.5 million proceeds), and 1.6 million super flow-through units at $4.30 each ($7 million).
Each unit consists of one share and half a warrant exercisable at a price of $3.10 each for three years. Each flow-through unit consists of one share and half a warrant. Each super flow through unit consists of one share and half a warrant.
The proceeds from the flow through units will be used for Canadian exploration expenses in the Urban-Barry Camp in Quebec while the proceeds from the other units will be used for ongoing exploration and development work.
Exploration drilling is focused on extending the mineralised strike length at the Gladiator, Barry and Moroy deposits that comprise the project. Moroy is on the Bachelor property where the company has its Urban-Barry mill. The Gladiator and Barry deposits are on the Urban-Barry property, 125km and 110km south of the mill.
Gladiator has a strike length of 1,600m and has been drilled to a depth of 1,100m. Drilling is focused on extending the strike of known mineralised zones with recent results at the Barbeau zone returning assays up to 3m grading 18.5g/t. Gladiator has an indicated mineral resource estimate of 743,000 tonnes grading 8.46g/t for 202,000 ounces and an inferred resource of 3Mt grading 9.1g/t for 897,000oz at a 3.5g/t cut-off grade.
Barry has a strike length of 1,000m, depth of over 600m and an indicated resource of 2.1Mt grading 5.84g/t for 385,000oz and an inferred resource of 2.7Mt grading 5.14g/t for 453,000oz at a 3.5g/t cut-off grade. It is permitted for initial mine development access and bulk sampling, with decline and cross cut development underway. It has had little previous drilling below 300m depth.
Moroy, a recent discovery near the Urban-Barry mill with access via the mothballed Bachelor mine, hosts unmined parallel mineralised and a measured resource of 302,000y grading 5.66g/t for 55,000 ounces, an indicated resource of 365,000t grading 4.77g/t for 56,000oz and an inferred resource of 396,000t grading 4.32/t for 55,000oz at a 3g/t cut-off grade.
Bonterra is in a permitting process to increase its Urban-Barry mill capacity from 800 tonnes per day to 2,400tpd by switching out existing rod and small ball mills for a SAG mill and larger ball mill and related equipment.
The company acquired Metanor Resources last year and has spun exploration assets including Larder Lake into Gatling Exploration.
Shares in Bonterra Resources (TSXV:BTR) are trading at C$2.36, valuing the company at $175 million.