BonTerra Resources Enters into Letter of Intent With Gold Royalties Corporation
Vancouver, BC – October 23, 2013: BonTerra Resources Inc. (TSX-V: BTR; FSE: 9BR) (the “Company” or “BonTerra”) is pleased to announce that it has entered into an exclusive non-binding letter of intent (the “LOI”) with Gold Royalties Corporation (TSX-V: GRO) (“Gold Royalties”) to sell a 1% net smelter return royalty interest (the “NSR”) on the Eastern Extension Gold Property, located in Urban Barry Township near historic Val D’Or, Québec. The terms of the LOI stipulate that Gold Royalties will purchase the NSR for 1,000,000 common shares of Gold Royalties (the "Share Consideration") at a deemed price of $0.50 per Gold Royalties Share (the "Transaction").
Closing of the Transaction, which is expected to occur on or before November 15, 2013 is subject to certain conditions, including execution of a binding definitive agreement (the “Definitive Agreement”) and the approval of the TSX Venture Exchange (the "TSXV"). One-half of the Share Consideration will be provided to BonTerra at Closing, with the balance of the Share Consideration provided to BonTerra six months from the date of Closing. All securities issued will be subject to the standard TSXV 4 month hold period.
BonTerra President and CEO, Nav Dhaliwal, states: “Gold Royalties has presented the Company with a unique partnership and strategy to continue to develop our Eastern Extension Property. Gold Royalties recently made its royalty entry into the Urban-Barry Gold Camp earlier this year when it acquired a 1% NSR royalty on the Barry Gold Deposit operated by Metanor Resources Inc. This is the first of many steps we, at the Company, are striving to make to clean up our balance sheet, service our existing debts and finance the Company in order to continue to develop what we feel to be a world class asset in a challenging gold market.”
About the Eastern Extension Gold Deposit the Gold Royalty Interest
The Eastern Extension Gold Deposit (the "Property") has an inferred resource of 492,000 ounces of gold comprising 4,337,000 tonnes grading 3.53 g/t (see BonTerra Resources news release dated July 27, 2012). The Property is located approximately 170 kilometers northeast of Val d'Or, Québec and is within the emerging Urban-Barry Gold Camp.
The new royalty interest will cover 23 mineral claims containing the deposit as well as a broader land package comprising the Eastern Extension project, with royalty coverage approaching 869 acres.
In addition to the Eastern Extension Gold Deposit being moved forward by BonTerra Resources, Eagle Hill Exploration Corp. is advancing a significant high-grade gold project located on its Windfall Lake Property, located a mere 8 kilometers north of the Eastern Extension Property
About BonTerra Resources
BonTerra is a Canadian gold exploration company based in Vancouver, BC focused on continuing to expand its NI 43-101 compliant gold resource on its Eastern Extension property, part of the world famous Abitibi Greenstone Belt in mining friendly Quebec. BonTerra has a total of three gold properties in the Urban-Barry belt, the Eastern Extension, Lavoie and Urban-Barry properties which are located approximately 170 km NE of Val-d’Or and 125 km SW of Chibougamau in the Urban, Barry and Bailly townships in Québec.
The Company owns 100% of the Property subject to a 2% NSR which is held by three individuals. 1% of the NSR can be purchased for a sum of $500,000.
ON BEHALF OF THE BOARD
BONTERRA RESOURCES INC.
President, Chief Executive Officer
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.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although BonTerra believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. The forward looking statements contained in this press release are made as of the date hereof and BonTerra undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.