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BonTerra Resources

Seabridge Gold sells its interest in the Red Mountain property to BonTerra Resources Inc.

BonTerra Resources Inc. (TSX.V: BTR) has not been in the news frequently but perhaps all that may change now. The company has signed a letter of intent to with Seabridge Gold (TSX: SEA, NYSE Amex: SA) to acquire 100% interest in the Red Mountain property located in British Columbia, Canada for $7.0 million in cash plus a $5.0 million convertible debenture. The transaction is expected to close at the end of September, 2009.

The Red Mountain property consists of 47 claims totalling 17,125.2 hectares and is located in a prolific mining district. This is a high-grade deposit ( > 0.25 opt) of 400,000 ounces in the measured and indicated categories plus an additional 248,000 ounces in the inferred resource category. Approximately US$40 million has spent by previous owners and diamond drilling on the property has totaled 134,800 metres in 466 holes. In addition, 2,000 metres of underground workings have been excavated, including a 1,000-metre production-sized decline. The proposed sale also includes a large complement of mining equipment.

It does not look like a sale of an unwanted property. According to Seabridge President and CEO Rudi Fronk, they have elected to take part of the proceeds of this proposed sale in the form of a convertible debenture so that Seabridge can continue to participate in Red Mountain's potential success. The objective of the sale has been to use cash proceeds to continue advancing Seabridge’s KSM and Courageous Lake towards feasibility without share dilution.

An elated BonTerra President and CEO Mitch Adam said that the acquisition brings a known, high-grade deposit together with the promising high-grade exploration results they have obtained from their immediately adjacent Willoughby property.  This combination creates the opportunity to develop a sustainable and profitable mining operation within a low-risk political jurisdiction opined Adam.

It is a giant step for BonTerra but indicates the corporate strategy the company is expected to pursue. In fact BonTerra has been actively acquiring projects into its portfolio. The company first acquired the Willoughby Gold Property in BC which entails the right to earn an initial 51% interest in the property from Copper Ridge Explorations Inc. by paying $25,000, issuing 550,000 shares and completing $1.5 million in exploration work on the property over four years.  The company has the option to increase its interest to 65% by issuing a further 300,000 shares and completing an additional $1.5 million in exploration over the next two years. A further 9 claims acquired later around Willoughby has now left BonTerra with a complete contiguous property.

BonTerra has also acquired the Zacatecas North Gold-Silver Property - Huston BC,. The property entails 17 mineral claims covering an area of approximately 7,724 hectares, lying within the Omineca mining district and id located adjacent to the old silver Queen mine property in central BC, ~30 km south from Huston on the Morice river-Owen Lake Forestry road, a good all-weather road which branches south from Highway 16 three km west of Huston. Following the latest acquisition from Seabridge, BonTerra now has an impressive portfolio of assets thus helping its valuations.

Mitch Adam confirmed that they will be starting drill programmes in both Willoughby and Red Mountain properties. We will be following BonTerra closely as the story unfolds.

About BonTerra Resources
BonTerra is a junior exploration company with its focus in North America. It has a strong management team and the ability to resource properties within British Columbia and the United States. BonTerra will provide a sound investment for its share holders by continually searching for quality properties to add to its portfolio.

About Seabridge Gold
Seabridge Gold is engaged in the development of gold properties in North America. From 1999 through 2002, when the gold price was lower, Seabridge acquired nine North American projects with substantial gold resources, including the multi-million ounce Courageous Lake and Kerr-Sulphurets-Mitchell deposits. Subsequent exploration by Seabridge has significantly expanded its acquired gold resource base.