Sign up USA
Proactive Investors - Run By Investors For Investors

BonTerra amends option deal for Eastern Extension property

BonTerra amends option deal for Eastern Extension property

BonTerra Resources (CVE:BTR) said Wednesday it has inked an amended agreement with Abitex Resources to immediately acquire a 100 percent interest in the mineral claims in the Bailly and Barry Townships in Quebec, known as the Eastern Extension property.

In consideration for the 100 percent stake, BonTerra will issue 1.25 million shares.

The new deal amends the option agreement between the two parties from September 2010, and reduces the cash component of the consideration. Closing is subject to the approval of the TSX Venture Exchange.

The property is subject to a two percent net smelter returns royalty, one percent of which can be purchased for $500,000.

Under the original option agreement, BonTerra had the right to earn up to a 100 percent interest in exchange for making cash payments totaling $110,000, issuing a total of 1.35 million shares, and incurring a total of $750,000 in exploration expenses on the property over four years.

To date, BonTerrra has paid $10,000, issued 500,000 shares and incurred $750,000 in exploration expenses.

The amendments to the deal reduce the cash payment obligations by $100,000 and increase the share issuance obligations by 400,000 shares, BonTerra said.

"This is a rare opportunity for BonTerra to reduce the cash component of the option agreement for the Eastern Extension," said president Navjit Dhaliwal.

"It is always our goal to focus our expenditures on our ongoing drill program in Quebec rather than elsewhere due to the high quality of the Property.

"BonTerra management decided to rush the exercise of the option in order to own the Property outright subject to the NSR. This amendment to the agreement highlights the partnership and goodwill BonTerra has been developing with our neighbors in the Urban-Barry gold camp, in this case Abitex Resources."

View full BTR profile View Profile

BonTerra Resources Timeline

Related Articles

1522843655_shutterstock_102742847.jpg
April 04 2018
BAM East will be the focus in 2018, after Landore completed a £3.15mln funding
1526980503_Scotgold---Richard-Gray-at-Tyndrum.jpg
May 22 2018
New money allows Scotgold to proceed with long-awaited redevelopment of Cononish
A view of DRDGOLD's flagship Ergo asset in Johannesburg
April 30 2018
The South African miner’s appeal lies with the gold bull as bullion prices seen moving north

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use