Quebec explorer Bonterra Resources has received a nonbinding letter of intent from a large third party, regarding an all-share acquisition of the company at about C$1.60 a share based on prices on November 6.
The company said on Tuesday that the offer was opportunistic, unsolicited and that it had since expired.
“[The offer] would have required that the company effectively cease its financing activities, which are necessary to fund its operations for the rest of the year,” Bonterra said.
The exploration firm further announced that it would pursue a financing of up to C$10-million to fund its Moroy, Gladiator and Barry projects in support of a resource estimate update and preliminary economic assessment (PEA) on these three properties.
The PEA is expected to be completed in the fall of 2021.
Shares in Bonterra closed 30% higher on Wednesday at C$1.29 a share, giving it a market capitalisation of just under C$100-million.