LAC BARRY PROSPECT FCI AND NSR
Golden Valley Mines granted an option to Bonterra Resources to acquire an 85% interest in the Lac Barry Prospect. In accordance with the option agreement, Bonterra Resources issued to Golden Valley Mines Mines 519,480 common shares in the capital of Bonterra Resources having an aggregate value of $200,000, and Bonterra must incur expenditures in an aggregate amount of $2,000,000 over a three-year period on the Lac Barry Prospect.
Bonterra Resources has met the option agreement expenditure requirements for the third anniversary date of $2,000,000. Golden Valley Mines Mines now retains a 15% free carried interest in the Lac Barry Prospect and a 3% net smelter royalty (“NSR”), with 1% of the NSR being subject to a buyback in favour of Bonterra Resources for $1 million payable by Bonterra Resources to Golden Valley Mines.
Bonterra completed till sampling (101 samples in 2016 and 26 in 2017), prospecting, grid establishment (79 km in 2016, 26 km in 2017, 53 km in 2018), permanent and drill trail construction (13.8 km), geophysical surveying (74-line km of IP and 310 km of ground and airborne magnetic), LiDAR survey and two phases of diamond drilling programs totalling 19,936.7 metres in fifty-five (55) holes. The results of this exploration activities lead to a new discovery of a gold and silver bearing horizon termed the Temica Gold Zone, with grades up to 2.7 metres at 4.7 g/t Au as reported by Bonterra.
For additional details with respect to the exploration and fieldwork programs completed to date on the Lac Barry Prospect, as well as for the details on the expenditures made to date by Bonterra on the project, please refer to Bonterra’s continuous disclosure documents available for viewing by the public through the internet at the SEDAR website (www.sedar.com) by accessing Bonterra’s issuer profile.