Mr. Chris Taylor reports
GREAT BEAR ANNOUNCES C$5.5 MILLION BOUGHT DEAL PRIVATE PLACEMENT OF FLOW-THROUGH COMMON SHARES AND EXPANSION OF DRILL PROGRAM TO 90,000 M
Great Bear Resources Ltd. has entered into an agreement with Cormark Securities Inc. to act as lead underwriter of a syndicate of underwriters that includes Canaccord Genuity Corp., pursuant to which the underwriters shall purchase one million common shares that qualify as flow-through shares of the company for the purposes of the Income Tax Act (Canada) at a price of $5.45 per flow-through common share, on a bought deal private placement basis, for aggregate gross proceeds to the company of approximately $5.45-million. The company has also granted the underwriters an option to sell up to an additional 150,000 flow-through common shares at the offering price up to the closing date.
The proceeds from the offering will be used to incur Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)) related to Great Bear's projects in Ontario. The company will renounce these expenses to the purchasers with an effective date of no later than Dec. 31, 2019.
The offering is scheduled to close on or about July 3, 2019, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.
Chris Taylor, president and chief executive officer of Great Bear, said: "By raising an additional $5.5-million, we will have over $15-million in cash on hand and will have funded the expansion of our ongoing drill program by an additional 30,000 metres, for a new total of 90,000 metres of drilling. Coupled with the potential for an additional $7.8-million from warrant exercise, Great Bear will remain very well funded with the flexibility to significantly expand and extend our drilling as required. We are strongly positioned to benefit from one of our industry's most significant exploration drill campaigns through 2019 and 2020."
About Great Bear Resources Ltd.
Great Bear Resources is a well-financed company based in Vancouver, Canada, managed by a team with a record of success in the mineral exploration sector. Great Bear holds a 100-per-cent interest, royalty free, in its flagship Dixie property, which is road accessible year-round via Highway 105, a 15-minute drive from downtown Red Lake, Ont. The Red Lake mining district is one of the premier mining districts in Canada, benefiting from major active mining operations including the Red Lake gold mine of Newmont Goldcorp Corp., plus modern infrastructure and a skilled work force. Gold production from the Red Lake district does not necessarily reflect the mineralization that may, or may not be, hosted on the company's Dixie property.
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