06:29 AM EDT, 04/19/2024 (MT Newswires) -- Bonterra Resources ( BONXF ) overnight Thursday said it will raise up to $4 million in a private placement with the proceeds slated for working capital and general corporate purposes.

Eight Capital will be lead agent for the offering of up to 16 million units at $0.25 per unit. The sale is expected to close on or around May 2, subject to certain conditions.

Each unit will consist of one Bonterra common share and one common share purchase warrant entitling the holder to acquire one share at an exercise price of $0.31 for a four-year period starting from the date of issuance.

In addition, Bonterra said it reached an agreement to pay $1.5 million in outstanding debt owed to an arms length creditor by issuing 6 million shares at $0.25 per share.