Bonterra Faces CRA Audit and Up to C$9.5 Million Exposure on Flow-Through Tax Renunciations

BonTerra Resources ( (TSE:BTR) ) has shared an update.

Bonterra Resources has disclosed that the Canada Revenue Agency is completing a tax audit of the company’s renunciation of Canadian exploration expenses related to two flow-through share financings completed in December 2019 and October 2021, totaling about C$16.96 million. The agency has indicated its intention to reclassify approximately C$11.05 million of previously renounced expenses as non-qualifying, a position Bonterra disputes on the basis that the CRA has incorrectly treated the Moroy Deposit as an extension of the Bachelor Mine. Subscribers to these financings are expected to receive reassessment notices directly from the tax authority, with reductions in renounced expenses applied on a pro rata basis within each financing. Under indemnity commitments given in the original flow-through agreements, Bonterra estimates its maximum aggregate exposure, including interest, penalties and certain additional taxes, at about C$9.5 million, with an initial anticipated liability of roughly C$3 million to be recognized in its 2025 financial statements, and the company says it is actively addressing its obligations and preparing to defend its tax position.

The most recent analyst rating on (TSE:BTR) stock is a Hold with a C$0.20 price target. To see the full list of analyst forecasts on BonTerra Resources stock, see the TSE:BTR Stock Forecast page.

Spark’s Take on TSE:BTR Stock

According to Spark, TipRanks’ AI Analyst, TSE:BTR is a Neutral.

The score is held back primarily by weak financial performance—no revenue, ongoing net losses, and persistent cash burn that likely requires continued financing—despite low leverage. Technicals are modestly supportive in the near term but still below longer-term trend measures, while valuation is constrained by negative earnings and no dividend. A positive corporate event (Hewfran Zone extension near existing infrastructure) improves the outlook but does not offset the current financial risk profile.

To see Spark’s full report on TSE:BTR stock, click here.

More about BonTerra Resources

Bonterra Resources Inc. is a Canadian mineral exploration company based in Val-d’Or, Quebec, focused on gold exploration and development. The company finances its exploration work in part through flow-through share offerings, which provide Canadian investors with tax benefits tied to qualifying exploration expenditures.

Average Trading Volume: 222,950

Technical Sentiment Signal: Sell

Current Market Cap: C$41.42M

For detailed information about BTR stock, go to TipRanks’ Stock Analysis page.