BonTerra Resources Inc. (TSX-V: BTR) is pleased to announce that it has closed its previously announced bought deal private placement for gross proceeds of $13,974,800 (the “Offering”). Sprott Capital Partners, a division of Sprott Private Wealth LP acted as lead underwriter on behalf of a syndicate of underwriters which included INFOR Financial Inc. (collectively, the “Underwriters”). Eventus Capital Corp. participated as a selling group member in the Offering.
Pursuant to the Offering, BonTerra issued 11,000,000 flow-through common shares of the Company (“Flow-Through Shares”) at a price of $0.35 per Flow-Through Share and 36,160,000 common shares of the Company (“Common Shares”) at a price of $0.28 per Common Share. 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, 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.