Bonterra Resources (TSXV: BTR) shares jumped 19.4% by noon on Monday after the company clinched an earn-in and joint venture deal with Osisko Mining (TSX: OSK) for its Urban-Barry properties in Quebec.
Under the terms of the agreement, Osisko will make a $30-million investment over a three-year period, granting it the opportunity to earn a 70% interest in the projects, which include the Gladiator and Barry deposits, and the Duke and Lac Barry properties.
Osisko’s flagship project is Windfall in Quebec, which the company is advancing with partner Gold Fields (NYSE: GFI; JSE: GFI)
Currently, Bonterra holds a 70% stake in the Duke property, with Osisko owning 30%. The Lac Barry property is 85% owned by Bonterra and 15% owned by Gold Royalties Corp. In total, the properties span over 225 sq. km.
The Gladiator deposit has indicated resources of 1.4 million tonnes at 8.61 grams gold per tonne, for 391,000 ounces. Inferred resources come to 4.2 million tonnes at 7.37 grams gold for 989,000 oz. gold.
Combined open pit and underground resources for the Barry deposit in the measured and indicated categories total 5.1 million tonnes at 4.21 grams gold per tonne for 690,000 oz. gold. Inferred resources encompass 4.4 million tonnes at 4.89 grams gold for 688,000 oz. gold.
Bonterra has a market capitalization of $25 million.
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