Pursuant to the Offering, Bonterra issued 17,857,000 flow-through common shares of the Company ("Flow-Through Shares") at a price of $0.84 per Flow-Through Share and 10,000,000 common shares of the Company ("Common Shares") at a price of $0.50 per Common Share. 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, which expenses will be renounced to the subscribers with an effective date no later than December 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.
In connection with the Offering, the Underwriters received a cash fee in an amount equal to 6.0% of the gross proceeds of the Offering. 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 final acceptance of the TSX Venture Exchange.
Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 4,600,000 Common Shares pursuant to the Offering (representing approximately 2.4% of the outstanding Common Shares) for total consideration of $2,300,000. Prior to the Offering, Mr. Sprott owned 14,444,500 Shares (approximately 8.9% of the then outstanding Common Shares). Mr. Sprott now owns indirectly 19,044,500 Common Shares (approximately 10.04% of the outstanding Common Shares).
The Common Shares were acquired by Mr. Sprott, through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company either on the open market or through private acquisitions or sell securities of the Company either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of 2176423 Ontario Ltd.'s early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2).
About Bonterra Resources Inc
BonTerra (BTR: TSX-V | BONXF: US | 9BR:FSE) is a Canadian gold exploration company based in Vancouver, BC focused on continuing to expand its NI 43-101 compliant gold resource on its West Arena Property, part of the world famous Abitibi Greenstone Belt in mining-friendly Quebec.
Bonterra Resources Inc