VANCOUVER, BC--(Marketwire -03/21/12)-
BonTerra Resources Inc. : BONTERRA AMENDS OPTION AGREEMENT TO ACQUIRE EASTERN EXTENSION PROPERTY, QUEBEC
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Suite 4006 - 1011 West Cordova Street
Vancouver, B.C. V6C 0B2
Telephone: (604) 678-5308
Fax: (604) 678-5309
TSX.V SYMBOL - BTR
FSE SYMBOL - 9BR
Vancouver, BC - March 21, 2012: BonTerra Resources Inc. (BTR: TSXV; FSE: 9BR) (the "Company") announces it has entered into an agreement with Abitex Resources Inc. ("Abitex") to immediately acquire a 100% interest in the mineral claims in the Bailly and Barry Townships, Quebec that are generally known as the Eastern Extension Property (the "Property") in consideration for the issuance of 1.25 million shares. The agreement amends the option agreement dated September 15, 2010, as amended, (the "Option Agreement") between the Company and Abitex, and the closing is subject only to TSX Venture Exchange approval. The Property is subject to a 2% net smelter returns royalty, 1% of which can be purchased for $500,000 (the "NSR").
Under the Option Agreement, and prior to the amendments, the Company was granted the option to earn up to a 100% interest in and to the Property, subject to the NSR, in consideration of the Company making cash payments to the Optionor totaling $110,000, issuing to the Optionor a total of 1,350,000 shares, and incurring a total of $750,000 in exploration expenditures on the Property over four years. See the Company's news release dated September 16, 2010 for more information. To date, the Company has paid $10,000, issued 500,000 shares and incurred $750,000 in exploration expenditures with respect to the Property.
The amendments to the Option Agreement reduce the cash payment obligations by $100,000 and increase the share issuance obligations by 400,000 shares.
Navjit Dhaliwal, President states "This is a rare opportunity for BonTerra to reduce the cash component of the option agreement for the Eastern Extension. It is always our goal to focus our expenditures on our ongoing drill program in Quebec rather than elsewhere due to the high quality of the Property. BonTerra management decided to rush the exercise of the option in order to own the Property outright subject to the NSR. This amendment to the agreement highlights the partnership and goodwill BonTerra has been developing with our neighbors in the Urban-Barry gold camp, in this case Abitex Resources."
The agreement to expedite the exercise of the option is subject to approval of the TSX Venture Exchange. Shares issued pursuant to the agreement will be subject to a restricted hold period expiring four months and a day after the date of issuance in accordance with applicable securities laws.
ON BEHALF OF THE BOARD
BONTERRA RESOURCES INC.
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward- looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company, such as the statement that the closing of the Option Agreement may occur and that approval from the TSX Venture Exchange may be obtained. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including the inability to close the agreement or obtain TSX Venture Exchange approval for any reason. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward- looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward- looking statements.
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.
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Source: BonTerra Resources Inc. via Thomson Reuters ONE [HUG#1596018]