VANCOUVER, March 30, 2017 /CNW/ - Bonterra Resources Inc. (TSX.V:BTR, US:BONXF, FSE:9BR1) ("Bonterra" or the "Company") is pleased to announce that it has entered into an option agreement (the "Agreement") with Durango Resources Inc. (TSX.V:DGO) ("Durango"), by which Bonterra can earn a 100% interest in Durango's Trove Windfall Lake Property (the "Trove Property") located in the Urban-Barry Gold Camp district of northern Québec.
The Trove Property is a direct extension of the south west mineralized trend that Bonterra is currently exploring on its Gladiator gold deposit and Coliseum gold property. The Company's technical team brings extensive experience associated with the type of geology hosted by the Trove Property.
Nav Dhaliwal, President and Chief Executive Officer of Bonterra, stated, "We are pleased to have entered into this agreement with Durango on the Trove Property, and to add significant value to Bonterra's large land portfolio in the Urban-Barry Gold Camp, noting the Trove Property's strategic location. The Urban-Barry Camp is one of most exciting and busiest camps in Canada, and 2017 looks to exceed expectations and outpace the previous year."
Pursuant to the Agreement, Bonterra can earn a 100% interest in the Trove Property by making the following payments and share issuances and undertaking the following exploration work:
- Pay $150,000 and issue 1,500,000 common shares within two business days of the date the TSX Venture Exchange accepts the transaction (the "Closing Date");
- On or before the first anniversary of the Closing Date, pay a further $150,000 and issue an additional 1,500,000 common shares;
- On or before the second anniversary of the Closing Date, pay $200,000 and complete a minimum of $1,000,000 in exploration expenditures;
Upon which Bonterra will have exercised the option and full title of the Trove Property will be transferred from Durango to Bonterra;
Durango will retain a 2% net smelter returns royalty in respect of the Trove Property. Bonterra may purchase 50% of this royalty at any time for $1,000,000.
For its efforts in introducing Durango to the Company, the Company will issue as a finder's fee to CJC Technology Inc. (Carlos Cervantes) 267,284 common shares.
Acquisition of the Trove Property and payment of the finder's fee are subject to the acceptance of the TSX Venture Exchange.
Bonterra Resources Quick Facts:
- Well financed with over $20m recently raised.
- Gladiator Gold Deposit:
- 100% controlled 8,126-hectare in the Urban-Barry Camp in Québec;
- Resource expansion and development program underway utilizing minimum of four drill rigs with up to 40,000 meters planned;
- Drilled dimensions of the Gladiator Deposit are currently outlined to a depth of 800 meters below surface, and a strike length of 1,200 meters (1.2 km);
- Gladiator remains open in all directions with drilling currently focused on the Deep East Zone, the Rivage Gap western side, Rivage Gap infill and a potential Coliseum exploration;
- At least five distinct subparallel zones or mineralized horizons have been identified to date.
- Larder Lake Gold Property:
- 100% controlled 2,221-hectare in the Cadillac-Larder Break camp in Ontario (refer to March 17, 2016 news release highlighting historical gold resource);
- Resource development and exploration program underway including upcoming drill program and geological modelling.
ON BEHALF OF THE BOARD OF DIRECTORS,
Nav Dhaliwal, President & CEO
Bonterra Resources Inc.
This document may contain or refer to forward-looking information based on current expectations, including, but not limited to the completion of the transaction, obtaining the approval of the TSX Venture Exchange, the prospect of Bonterra achieving success in exploring the Trove Property, and the impact on Durango and Bonterra of these event, including the effect on the share prices of both Durango and Bonterra. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties relating to Durango, please refer to its prospectus filed on its SEDAR profile at www.sedar.com.
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.
SOURCE BonTerra Resources Inc.