BonTerra Resources (BTR.V) has entered into an agreement with Kerr Mines (KER.TO) whereby BonTerra will acquire Kerr’s 100% interest in the Larder Lake property in Ontario. Larder contains a NI43-101 compliant estimate with in excess of 950,000 ounces of gold at an average grade of approximately 5.4 g/t.
It’s not unlikely BonTerra will be able to increase this resource estimate after another few rounds of drilling, considering the Larder property contains a 9 kilometer long zone that belongs to the Cadillac/Larder lake break and the Kerr Addison mine, which is located within walking distance from Larder, has produced approximately 11 million ounces of gold. It’s also very interesting to note the Larder property is located in an established mining region with existing infrastructure. Not only is a paved highway running right through the property, a power line operated by Ontario Hydro is also running along the length of the property.
And the price tag for all this? C$1.15M in cash payments (of which just C$650,000 are deferred payments) and 10 million shares of BonTerra for a total consideration of C$5.15M based on yesterday’s closing price. And that’s pretty cheap, considering BonTerra is paying just C$5.36 per ounce in the ground of which the majority will be paid in paper rather than in cash.
BonTerra is also continuing to work on its Gladiator project in Québec and we’re expecting to see more drill results within the next few weeks from this fully-funded 25,000 meter drill program. The share price is up 129% since we discussed the company in December when it was trading at C$0.175, but there might be more room to run considering BonTerra’s acquisition of the Larder property.
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The author has no position in BonTerra Resources. Please read the disclaimer
