Bonterra Resources (BTR.V): Oversized PP has created a golden trade opportunity
The stock has dropped sharply from 0.295 to 0.22 following news of an upsized PP at 0.22 (hard dollar). It looks to be a great opportunity for a short term trade, or long term positioning.
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Summary
Bonterra Resources Inc. (TSX-V: BTR, OTCQX: BONXF) is operating in Quebec’s Urban-Barry gold camp, in the prolific Abitibi Greenstone Belt, which has produced over 200 million ounces of gold.
With a recent upsized private placement, strategic assets, and a high-profile $30 million joint venture with Gold Fields, Bonterra presents a compelling opportunity for investors looking for both short-term flips and long-term growth.
The Catalyst: Upsized $10.5M Private Placement
On June 13, 2025, Bonterra announced a significant increase in its private placement from $7M to $10.5M CAD due to “strong market demand.”
The offering includes:
22,727,272 hard-dollar units at $0.22/unit
14,583,333 flow-through units at $0.24/unit
6,557,377 premium flow-through units at $0.305/unit
It appears the market may have taken exception to the 0.24 FT pricing, which IMO has opened up an opportunity for investors to position nearly 30% cheaper than it was a week ago.
The stock dropped from $0.29 to $0.22, aligning with the hard-dollar unit price, potentially creating a quick flip opportunity once the placement closes.
There is a rock solid technical base at ~0.20 followed by sharp, quick 20%-40% rally’s every time it’s tested.
The oversubscribed financing signals strong institutional interest and provides Bonterra with the capital to advance its exploration and development plans.
Key Fundamentals
Strategic Assets in a World-Class Jurisdiction
Bonterra’s portfolio is anchored by the Bachelor Mill Complex, the only operational mill in the Urban-Barry camp, with low CAPEX required to restart production. Its proximity to Gold Fields’ Windfall Project (3,400 tpd mill in late-stage permitting) enhances its strategic value. The company’s key deposits—Gladiator, Barry, Moroy, and Bachelor—boast:
1.24M ozs Au Measured & Indicated (M&I) across all categories
1.78M ozs Au Inferred, with high-grade potential (e.g., Gladiator: 391K ozs M&I @ 8.61 g/t Au, 989K ozs Inferred @ 7.37 g/t Au)
2. Phoenix JV with Gold Fields
Bonterra’s joint venture with Gold Fields is a game-changer. Gold Fields can earn a 70% interest by spending C$30M over three years (C$18M already spent by March 2025). The JV has drilled ~65,000m, confirming high-grade Lynx-type mineralization at the Moss target, just 5km from the Windfall deposit. Gold Fields’ expertise and infrastructure development (including a new hydroelectric line) de-risks and accelerates Bonterra’s exploration.
3. Exploration Upside
In 2024, Bonterra’s 5,000m drill program at its 100%-owned Desmaraisville property uncovered four new mineralized zones within 5km of the Bachelor Mill. Using VRIFY AI tools, the company has identified several near-mill targets for its 2025 drill campaign, which could unlock further discoveries and add significant value.
4. Market Snapshot
Market Cap: C$37.9M (as of June 13, 2025)
Share Price: C$0.225
Shares Outstanding: 168.5M
The Opportunity
The recent share price dip to $0.22 offers a potential near-term trading opportunity as the private placement closes and market sentiment stabilizes. Longer-term, Bonterra’s strategic mill, high-grade deposits, and partnership with Gold Fields position it for significant re-rating as exploration results roll in and the Urban-Barry camp gains traction.
Source: Bonterra Q2 2025 Corporate Presentation, June 13, 2025 Press Release
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What are your thoughts on Bonterra? Let me know in the comments, and happy investing!
Disclaimer: Always conduct your own due diligence. Investments in junior mining carry significant risks. This is not financial advice. The author has not been compensated to produce and distribute this content.