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Bonterra Completes First Tranche of Private Placement for Gross Proceeds of $12.27 million
Val-d'Or, Quebec--(Newsfile Corp. - December 9, 2020) -  Bonterra Resources Inc. (TSXV: ...
About this update from Bonterra Resources, Inc.
[{"type":"text","content":"Bonterra Completes First Tranche of Private Placement for Gross Proceeds of $12.27 millionVal-d'Or, Quebec--(Newsfile Corp. - December 9, 2020) -  Bonterra Resources Inc. (TSXV: BTR) (OTCQX: BONXF) (FSE: 9BR2) (\"Bonterra\" or the \"Company\") is pleased to announce that it has closed the first tranche of the non-brokered private placement previously announced on November 23, 2020 and December 3, 2020 (the \"Offering\"). In this first tranche, the Company raised aggregate gross proceeds of $12,270,375 (the \"First Tranche\") from the sale of 10,669,891 common shares of the Company (the \"Shares\") at a price of $1.15 per Share. In connection with the closing of the First Tranche, the Company will pay finder's fees to INFOR Financial Inc. and Cormark Securities Inc., each an arm's length finder, an aggregate of $305,750 in cash.Certain funds managed by Wexford Capital LP, an insider of the Company, acquired directly or indirectly a total of 4,000,000 Shares in the Offering on the same terms as other participants for an aggregate purchase price of $4,600,000. The direct and indirect participation in the Offering by an insider of the Company constitutes a \"related party transaction\" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying on the exemptions from the formal valuation and minority approval requirements in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, on the basis that the fair market value (as determined under MI 61-101) of the related party transactions does not exceed 25% of the Company's market capitalization. On November 10, 2020, the Bonterra board of directors created a special committee of independent directors to evaluate strategic alternative transactions, including the Offering. The special committee oversaw the Offering and approved its terms. In particular, the special committee reviewed market demand against the Company's planned 2021 exploration program in approving the increase in the size of the Offering from $10,000,000 to $15,000,000 as announced on December 3, 2020. The net proceeds of the Offering will be used to fund drilling campaigns at Bonterra's Moroy, Gladiator and Barry projects and to prepare a resource estimate update and a Preliminary Economic Assessment (\"PEA\") on these three projec...