Canadian gold exploration company Bonterra Resources has concluded its private placement, raising over $8.54m, which includes the full exercise of the over-allotment option amounting to $767,500.
The offering involved the sale of 5,250,000 flow-through (FT) units at $0.445 each, generating $2.33m, as well as 24,820,000 units at $0.25 each, raking in over $6.2m.
For this transaction, Eight Capital served as the lead agent and sole bookrunner, collaborating with a syndicate that included Cormark Securities.
Each FT unit comprises one common share and one warrant, with both components qualifying as “flow-through shares” under Canadian and Quebec tax laws.
The units consist of a common share and a warrant each, while each warrant allows holders to buy one Bonterra common share at C$0.31 until 3 May 2028.
Bonterra disclosed that 20 million units, known as LIFE Units, were sold under the listed issuer financing exemption and are immediately tradeable for Canadian buyers.
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The remaining units, alongside the FT Units, were offered through various exemptions and are subject to a four-month hold period in Canada, ending 3 September 2024.
The completion of the offering is contingent on regulatory approvals, including the final nod from the TSX Venture Exchange.
Bonterra plans to allocate the net proceeds towards working capital and general corporate needs.
For Quebec residents purchasing FT Units, a portion of the Canadian Exploration Expense (CEE) is eligible for additional deductions related to exploration expenses in the province.
In association with the offering, Bonterra issued agent warrants for the purchase of 2,004,500 common shares at $0.25 per share, valid for four years post-closing.
Company insiders have acquired 6,050,000 Units, which are also subject to the four-month hold period.
Additionally, Bonterra settled a $1.5m debt with Orbit Garant Drilling by issuing 6 million common shares at $0.25 each.
