VANCOUVER, March 22, 2017 /PRNewswire/ - BonTerra Resources Inc. (TSX-V: BTR, US: BONXF, FSE: 9BR1) ("BonTerra" or the "Company") is pleased to announce that Kinross Gold Corporation ("Kinross") has agreed to acquire, by way of private placement, 14,857,440 common shares ("Common Shares") of BonTerra at a price of $0.35 per Common Share for total gross proceeds of $5,200,104 (the "Transaction"). On closing of the Transaction, Kinross will hold approximately 9.5% of BonTerra's issued and outstanding common shares on an undiluted basis.
The Transaction is expected to close on or about March 24, 2017. The gross proceeds from the sale of the Common Shares will be used for exploration on BonTerra's properties and for general working capital purposes. The Transaction remains subject to the approval of the TSX Venture Exchange.
Mr. Nav Dhaliwal, CEO and President of BonTerra, commented, "We are very pleased to have secured an important investment and a strategic relationship with an industry leader such as Kinross. Their entry into the Urban Barry gold camp further validates our ongoing progress and success at the Gladiator deposit and surrounding properties. The depth of technical expertise that Kinross offers will be of great value to BonTerra's development going forward."
Any securities to be issued under the Transaction will be subject to a hold period of four months and a day from the closing date of the Transaction in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws.
INFOR Financial Inc. was retained as strategic financial advisor to BonTerra with respect to the Transaction and its negotiations with Kinross and will be paid a finder's fee in respect thereof.
ON BEHALF OF THE BOARD OF DIRECTORS,
Nav Dhaliwal, President & CEO
BonTerra Resources Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains "forward-looking information" that is based on BonTerra''s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to BonTerra's exploration and development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause BonTerra's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. BonTerra disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE BonTerra Resources Inc.