Mr. Chris Taylor reports
GREAT BEAR ANNOUNCES UPSIZED BOUGHT DEAL PRIVATE PLACEMENT OF FLOW-THROUGH COMMON SHARES TO C$8.2 MILLION
In connection with its previously announced bought deal financing, Great Bear Resources Ltd. and a syndicate of underwriters led by Cormark Securities Inc. and including Canaccord Genuity Corp. have agreed to increase the size of the previously announced financing. The company will now issue 1.5 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 $8.2-million. The company has also granted the underwriters an option to sell up to an additional 500,000 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: "Interest in this placement from top-tier investors whom we are pleased to include as shareholders has exceeded our capacity to accommodate within the terms announced on Wednesday. We are therefore pleased to announce expansion of the placement and know that we will benefit from the added flexibility this additional funding will provide at the exploration level at Dixie."
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, royalty-free interest in its flagship Dixie property, which is road accessible year-round by Highway 105, a 15-minute drive from downtown Red Lake, Ont. In addition, Great Bear is also earning a 100-per-cent, royalty-free interest in the Pakwash, Dedee and Sobel properties, which cover regionally significant gold-controlling structures and prospective geology elsewhere in the Red Lake district.
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