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Bonterra Resources (OTCQX:BONXF) +19.3% in early trading Monday after saying it entered into a binding letter agreement with Osisko Mining (OTCPK:OBNNF) for an exploration earn-in and joint venture agreement on its Urban-Barry property, in addition to the adjoining Duke and Lac Barry properties, in Quebec.
The earn-in and joint venture will provide the terms for the advancement of the properties through a $30M investment by Osisko (OTCPK:OBNNF) over a three-year period and provide a path for Osisko to earn a 70% interest in the properties.
The Duke property is currently 70% owned by Bonterra (OTCQX:BONXF) and 30% owned by Osisko (OTCPK:OBNNF), and the Lac Barry property is 85% owned by Bonterra and 15% owned by Gold Royalty Corp. (GROY)
Bonterra (OTCQX:BONXF) said the agreement does not include the Bachelor-Desmaraisville property, which hosts the Bachelor Mill Complex, where exploration drilling is ongoing and 10K meters are expected to be drilled before year-end.