Bonterra Resources (BTR.V) is taking advantage of its recent exploration results to raise a substantial amount of money. The company aims to raise C$2.75M in a flow-through financing priced at C$0.22 per flow-through share as well as an additional C$450,000 in hard dollars at C$0.20 with ½ warrant attached. Each full warrant will allow the warrant holder to acquire an additional share of BonTerra at a price of C$0.30 within two years after the placement closes.
Raising cash when you’ve got the eyes of the exploration world on you is a good move, and there’s no doubt the recent drill results will attract some new investors to this story. Of interest are the recent intercepts of 6.6 meters at 14 g/t (including 0.8 meters containing 104.5 g/t gold, resulting in the other 5.8 meters having an average grade of 1.51 g/t), as well as 7.7 meters of 7.2 g/t. This last intercept could be very important for the Gladiator project as the gold mineralization was encountered approximately 200 meters below the current resource estimate and it highlights the potential at depth.
As of at the end of August, BonTerra still had a working capital position of C$1.2M, so the current capital raise should be seen as an opportunistic move as there was no urgent need for BonTerra to raise more cash.
Go to BonTerra’s websiteDisclosure: The author holds no position in BonTerra Resources. Please see our disclaimer for current positions.
