BonTerra (BTR) to acquire B.C. gold property
BonTerra Resources (TSX: V.BTR) announced Thursday that it has executed a letter of intent, and will proceed to acquire 100% of Seabridge Gold’s (TSX: T.SEA) interest in the Red Mountain property near Stewart, British Columbia.
“This acquisition brings a known, high-grade deposit together with the promising high-grade exploration results we have obtained from our immediately adjacent Willoughby property. We think this combination creates the opportunity to develop a sustainable and profitable mining operation within a low-risk political jurisdiction,” says BonTerra president and CEO Mitch Adam.
The company says the terms of the purchase agreement will provide for the transfer of the Red Mountain Property from Seabridge to BTR for C$11.95 million, including $6.95 million in cash and $5 million pursuant to the issuance of a secured three year 3% convertible debenture.
Closing of the transaction is subject to approval by the TSX Venture Exchange, and completion of a financing in an amount necessary to cover the cash consideration of the transaction, says BonTerra. The company also announced a $12 million non-brokered unit financing Thursday at 50 cents per unit.
