Bonterra Announces C$5 Million Credit Facility

Bonterra Resources Inc. has secured a C$5 million non-revolving credit facility from Wexford Capital LP, the company's largest shareholder and an insider, highlighting the challenging financial position the Quebec-based gold explorer currently faces. The facility carries an interest rate of 8% plus the six-month SOFR rate and matures on September 23, 2026, with provisions allowing Wexford to receive interest and commitment fees in common shares rather than cash, subject to a 19.9% ownership cap.

The financing comes at a critical juncture for Bonterra as the company navigates an ongoing Canada Revenue Agency audit and evaluates strategic alternatives to maximize shareholder value. The credit facility serves two primary purposes: reimbursing shareholders who participated in flow-through private placements from 2019 and 2021 for tax liabilities, and funding exploration expenditures at the Desmaraisville property to satisfy flow-through renunciation commitments. This dual use underscores the company's need to address legacy obligations while maintaining its exploration activities.

Bonterra's asset portfolio includes advanced exploration properties in Quebec anchored by a central milling facility, with the Barry and Gladiator deposits collectively holding 1.401 million ounces of Measured & Indicated resources at 2.90 g/t gold. The company benefits from a strategic joint venture with Gold Fields Ltd., which acquired Osisko Mining in October 2024 for C$2.16 billion and can earn a 70% interest in the Urban-Barry properties by spending C$30 million by November 2026. This partnership provides operational backing and development potential for Bonterra's core assets.

While the credit facility provides necessary short-term financial flexibility, the reliance on insider funding and the ongoing regulatory challenges suggest Bonterra faces significant operational headwinds. The company's ability to leverage its partnership with Gold Fields and advance its gold projects will be critical for long-term value creation, particularly as it works through the current audit process and considers strategic alternatives in a competitive gold exploration market.