Mr. Nav Dhaliwal reports
BONTERRA ANNOUNCES INCREASE IN BOUGHT DEAL FINANCING TO $20 MILLION
Bonterra Resources Inc. has entered into an amended agreement with Sprott Capital Partners to act as lead underwriter and Infor Financial Inc. and has agreed to increase the offering size of purchased securities from $12,910,200 to $19,999,880 in gross proceeds.
The offering will consist of a combination of (a) 17,857,000 flow-through common shares of the company at a price of 84 cents per flow-through share and (b) 10 million common shares of the company at a price of 50 cents per common share.
In connection with the offering, the underwriters will be entitled to a cash fee in an amount equal to 6.0 per cent of the gross proceeds of the offering, to be paid out of the non-flow-through portion of the offering at closing.
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, and also qualify for the two 10-per-cent enhancements under Section 726.4.9 and Section 7184.108.40.206 of the Quebec Taxation Act, which expenses will be renounced to the subscribers with an effective date no later than Dec. 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. All securities issued under the offering will be subject to a four-month hold period from the date of issue in accordance with applicable securities laws. The offering is subject to acceptance of the TSX Venture Exchange.
The offering is scheduled to close on June 30, 2017, or such other date or dates as the company and the lead underwriter may agree.
We seek Safe Harbor.