BonTerra Resources (BTR.V) has released new drill results from the Rivage Gap Western Extension of the Gladiator Deposit in Québec.
Hole 47 discovered a new gold zone at a depth of approximately 300 meters, whilst hole 48 intersected several higher grade intervals in the RGWE zone. With 3.8 meters of 16.8 g/t gold and 1 meter at 14.9 g/t gold, BonTerra is confirming the continuity of the gold mineralization over length of 1,200 meters and a depth of up to 650 meters below surface. The company’s Gladiator project remains open in all directions.
The Rivage Gap offers the company an opportunity to increase the total size of the gold resources and the drill bit of the two drill rigs (with a third one to be added soon) has continued to confirm the company’s theoretical technical model.
This is probably also what attracted Sprott Capital Partners to BonTerra, as Sprott Private Wealth is acting as an underwriter for a financing which has recently been upsized to C$13.9M. BonTerra will issue 11 million flow-through shares at C$0.35 and an additional 36.2 million common shares, priced at C$0.28. The almost C$4M raised in the flow-through financing have to be spent before the end of this year, so you can expect BonTerra’s news flow to continue at an elevated level.
On top of that, BonTerra also raised an additional C$1M in a non-brokered financing, for total net proceeds of approximately C$13M. As of at the end of November, BonTerra had a working capital position of approximately C$2M, so this cash infusion will take care of the exploration expenditures in 2017 and beyond.
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The author has no position in BonTerra Resources. Please read the disclaimer
