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OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION
DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO
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VANCOUVER, June 30, 2017 /CNW/ - Bonterra Resources
Inc. (TSX-V: BTR, US: BONXF, FSE: 9BR1) (the
"Company" or "Bonterra") is pleased to announce that
it has closed its previously announced bought deal private
placement for gross proceeds of $19,999,880 (the "Offering"). Sprott
Capital Partners, a division of Sprott Private Wealth LP, acted as
lead underwriter on behalf of a syndicate of underwriters which
included INFOR Financial Inc. (collectively, the
"Underwriters").
![Bonterra Resources Inc. (BTR:TSX-V) (CNW Group/BonTerra Resources Inc.) Bonterra Resources Inc. (BTR:TSX-V) (CNW Group/BonTerra Resources Inc.)](https://mma.prnewswire.com/media/529804/BonTerra_Resources_Inc__Bonterra_Announces_Closing_of__20_Millio.jpg)
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).
ON BEHALF OF THE BOARD OF DIRECTORS,
Nav Dhaliwal, President &
CEO
Bonterra Resources Inc.
Neither the 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 news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act") or any state securities laws and
may not be offered or sold within the
United States or to, or for account or benefit of, U.S.
Persons (as defined in Regulation S under the 1933 Act) unless
registered under the 1933 Act and applicable state securities laws,
or an exemption from such registration requirements is
available.
This news release includes certain forward-looking statements
concerning the use of proceeds of the Offering, the future
renunciation of Canadian Exploration Expenses that are flow-through
mining expenditures, the tax treatment of the Flow-Through Shares,
the future performance of our business, its operations and its
financial performance and condition, as well as management's
objectives, strategies, beliefs and intentions. Forward-looking
statements are frequently identified by such words as "may",
"will", "plan", "expect", "anticipate", "estimate", "intend" and
similar words referring to future events and results.
Forward-looking statements are based on the current opinions and
expectations of management. All forward-looking information is
inherently uncertain and subject to a variety of assumptions, risks
and uncertainties, including the speculative nature of mineral
exploration and development, fluctuating commodity prices, the
future tax treatment of the Flow-Through Shares, competitive risks
and the availability of financing, as described in more detail in
our recent securities filings available at www.sedar.com. Actual
events or results may differ materially from those projected in the
forward looking statements and we caution against placing undue
reliance thereon. We assume no obligation to revise or update these
forward looking statements except as required by applicable
law.
SOURCE BonTerra Resources Inc.