Bonterra grants 70% option on Gladiator and Barry gold projects to Osisko Mining

Drilling at the Gladiator gold project in Quebec. Credit: Bonterra Resources.

Bonterra Resources (TSXV: BTR) and Osisko Mining (TSX: OSK) have signed an agreement granting to Osisko the right to earn up to a 70% interest in Bonterra’s Gladiator and Barry gold projects in Quebec’s Eeyou Istchee James Bay region.

Osisko has agreed to spend C$30 million on the properties over the next three years and will make an up-front payment of C$5 million. Osisko will spend C$10 million each year, but it will have the right to carry over exploration spending from year to or it can pay cash in lieu of expenditures. Osisko will be the operator.

When Osisko has earned its 70%, a joint venture will be formed. Bonterra’s interest in the Gladiator, Barry and Duke properties will be 30% and in the Lac Barry joint venture 15%. Should one partner’s interest be diluted to less than 10% of the joint venture, that interest will be converted to a 1% net smelter return royalty, half of which is subject to a buyback of C$1 million.

“With a C$30 million exploration budget over three years and leveraging Osisko’s expertise in this prolific gold camp, we believe we’re well positioned for significant exploration and development success on the Gladiator and Barry projects,” said Bonterra CEO and president Marc-Andre Pelletier.

“With the additional C$4 million received on closing (C$1 million already received) and the revenue streams from leasing the Bachelor camp and selling gold from the mill clean-up, we expect to have ample funds to complete this year’s more than 15,000 meters drill campaign at the Desmaraisville properties.”

Pelletier noted that Bonterra has three drills turning at its 100%-owned Desmaraisville gold property near its Bachelor mill complex. The company is seeking high-grade intercepts that were previous drilled but lack follow-up.