Bonterra closes $24 million private placement, stock jumps

Bonterra issued 7,385,000 units of the company at C$2.50 per unit for gross proceeds of C$18.5 million, 2.2 million flow-through units at C$3 for gross proceeds of C$6.5 million and 1.6 million super flow-through units at C$4.30 for gross proceeds of C$7 million.

Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant is transferrable and entitles the holder to acquire one common share of the company until August 20, 2021 at C$3.10, Bonterra said in a press release.   

Sprott Capital Partners LP acted as lead agent on behalf of a syndicate of agents which included PI Financial Corp., RBC Dominion Securities and Haywood Securities.  

The gross proceeds from the issuance of the units will be used for Canadian exploration expenses. The net proceeds from the units sold will be used for ongoing exploration and development work and for general corporate purposes.

Bonterra currently has three active gold exploration projects in Quebec and a market capitalization of C$149 million.