BonTerra Resources Receives Approval on Acquisition of Larder Lake Property from Kerr Mines Inc.
Vancouver, BC – April 28, 2016: BonTerra Resources Inc. (TSX-V: BTR, US: BONXF, FSE: 9BR1) (the “Company” or “BonTerra”) is pleased to announce that the Company has received TSX Venture Exchange (“Exchange”) approval on its acquisition agreement for 100% interest in the Larder Lake Property (the “Property”) from Kerr Mines Inc. (“Kerr Mines”), located in the McVittie and McGarry Townships of Ontario, Canada.
"We are extremely pleased to receive the final Exchange approval on the acquisition of the Larder Lake Property from Kerr Mines. The historical gold resources known to exist at the Larder Lake Property, when combined with the current resource base at BonTerra’s Gladiator Gold Project, immediately transforms the Company to a leader amongst its peers. Our technical team can now take action to unlock the potential at the Larder Lake Property and the key district along the Cadillac-Larder Break. I would like to welcome Kerr Mines as a new significant Insider of BonTerra,” commented Nav Dhaliwal, President and CEO.
As consideration for the Property, BonTerra will:
- Pay $200,000 and issue 10 million common shares to the vendors upon Exchange approval;
- Pay $300,000 to the vendors on the eight-month anniversary of Exchange approval;
- Pay $350,000 to the vendors on the one-year anniversary of Exchange approval (in the event that BonTerra completes an equity financing for gross proceeds of not less than $4-million, this payment and the payment referred to above are accelerated and must be made within 10 days of the close of such financing);
- Pay $300,000 to the vendors on the 18-month anniversary of Exchange approval (in the event that BonTerra completes an equity financing for gross proceeds of not less than $4-million this payment is accelerated and must be made on the one-year anniversary of Exchange approval).
The shares issued are to be voted with management for the forthcoming two years’ of annual general and special meetings of the Company. Upon closing, Kerr Mines will hold approximately 14.2% of BonTerra’s issued shares, and shall be deemed an Insider of the Company, as per Exchange policies.
Larder Lake Gold Project Description:
- The Larder Lake Property is located in Eastern Ontario, in the McVittie and McGarry Townships, near the town of Virginiatown.
- The Bear Lake deposit hosts a historical inferred mineral resource* (2011, P+E Mining) of 3,750,000 tonnes at 5.7 g/t (683,000 oz). The Cheminis deposit contains a historical indicated mineral resource* (2011, P+E Mining) of 335,000 tonnes at 4.1 g/t (43,800 oz) and inferred of 1,391,000 tonnes at 5.2 g/t (233,400 oz).
- The Larder Lake Gold Property straddles 9 km strike length of the Cadillac/Larder Lake break, a prolific regional fault zone that hosts numerous historic and active gold mines, including the historic Kerr Addison mine located about 5 km east of the Larder Lake Project (11 million ounces of gold produced during its mine operation).
- Extensive infrastructure including a paved highway crosses the length of the Property, various areas of the project are easily accessible by truck or all-terrain vehicles on non-serviced roads and trails, and an Ontario Hydro power line also runs along the length of the Property.
- Central to the Larder Lake Gold Property is the Cheminis Property, otherwise known as the Cheminis Mine, which includes a vertical shaft to a depth of 1,085 feet, with six levels of which the deepest is at 1,035 feet. Intermittent past production from the Cheminis Mine has totaled approximately 260,000 tons at a recovered grade of approximately 0.104 ounces Au/ton.
- Gold Fields entered into an option in 2012 to earn a 60% interest in the Bear Lake properties by spending $40 million in exploration and development. After 3 years of work, they terminated their option last year when Gold Fields terminated all exploration activities worldwide. Kerr Mines is in possession of their results and data.
Disclosure of Historical Estimates*:
The Larder Lake Project contains a historical resource estimate completed in August 15, 2011 by P&E Mining Consultants titled “43-101 Technical Report and Updated Resource Estimates on the Larder Lake Property, Larder Lake, Ontario for Bear Lake Gold Ltd.” BonTerra considers this resource estimate to be historical; it has not independently verified them, and therefore they should no longer be relied upon. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and BonTerra is not treating the historical estimate as current mineral resources.
|*2011 Total Resource Estimate @ 2.5 g/t Au Cut-Off Utilizing Gold Price of US$1,207/oz|
|August 15, 2011 – P&E Mining Consultants NI 43-101 Technical Report|
Please visit www.bonterraresources.com for information on the Larder Lake Property, its location, and other general information. The Larder Lake Property 43-101 technical report, completed by P&E Mining Consultants, is currently available on Kerr Mines website www.kerrmines.com.
In relation to the transaction, the Company paid a finder’s fee of 558,908 common shares to an arm’s length third party.
Dale Ginn, P.Geo. has approved the information contained in this release. Mr. Ginn is a Director and Vice President of Exploration for BonTerra and is a Qualified Person as defined by NI 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS,
Nav Dhaliwal, President & CEO
BonTerra Resources Inc.
For additional information, please contact:
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.
This press release contains "forward-looking information" that is based on Bonterra’’s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Bonterra’s exploration and development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Bonterra’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Bonterra disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.