A fresh cash infusion will complement BonTerra’s core values.
Update: On February 7 BonTerra reported a bought deal announced the previous day had increased from $6 million to $9.39 million. The private placement will consist of 11 million flow-through shares at $0.35 and 19.8 million shares at $0.28.
An ambitious drill campaign gets additional backing as BonTerra Resources TSXV:BTR announces a bought deal private placement of $9.39 million. Acting as lead underwriter will be Sprott Capital Partners, a division of Sprott Private Wealth LP. March 2 is scheduled for the closing date. The news follows a flurry of high-grade assays from the company’s Gladiator gold project in Quebec’s Abitibi region.
On February 2 BonTerra released results from two holes drilled last year on Gladiator, which currently has two rigs busy and a third waiting to join in. Hole BA-16-47 intersected the project’s Main zone as well as a new zone south of the deposit, with highlights showing:
-- 5.6 g/t gold over 1 metre, starting at 254 metres in downhole depth (Main zone)
-- 2 g/t over 3 metres, starting at 376 metres (New zone)
BA-16-48 delivered these results:
-- 14.9 g/t gold over 1 metre, starting at 358 metres (Footwall zone)
-- 16.8 g/t over 3.8 metres, starting at 394 metres (Main zone)
True widths weren’t available.
Two days earlier the company released three intervals from this year’s first hole, with assays as high as 15.7 g/t over 8.5 metres. As the 25,000-metre program continues, BonTerra hopes to connect zones across a 1.2-kilometre potential strike.
A 2012 resource estimate used a 4 g/t cutoff to show an inferred 905,000 tonnes averaging 9.37 g/t for 273,000 ounces. An update could be completed this spring or summer.
BonTerra also holds the Larder Lake project in Ontario, which hosts two historic, non-43-101 deposits. The Bear Lake estimate came to 683,000 gold ounces inferred, while the Cheminis estimate showed 43,800 gold ounces indicated and 233,400 ounces inferred. With an additional 25,000 metres drilled by Gold Fields NYSE:GFI to consider, BonTerra has a new 43-101 in preparation.