05:34:05 EDT Wed 03 Jun 2020
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or Name

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Great Bear Resources Ltd (3)
Symbol GBR
Shares Issued 44,306,009
Close 2019-11-28 C$ 6.26
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Great Bear closes $16.7-million bought deal

2019-11-28 14:12 ET - News Release

Mr. Chris Taylor reports


Great Bear Resources Ltd. has closed an oversubscribed bought deal private placement financing, which was previously announced on Nov. 7, 2019, through a syndicate of underwriters led by Cormark Securities Inc. and Canaccord Genuity Corp., and including PI Financial Corp.

The offering of 1.75 million shares and 250,000 additional shares that were available for distribution was fully subscribed. Accordingly, the company has issued two million common shares that qualify as flow-through shares for the purposes of the Income Tax Act (Canada) at a price of $8.35 per flow-through common share for aggregate gross proceeds to the company of $16.7-million.

The proceeds of 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 the Red Lake district of Ontario. The company will renounce these expenses to the purchasers with an effective date of no later than Dec. 31, 2019.

The flow-through shares are subject to a four-month-and-one-day hold period, expiring on March 29, 2020, in accordance with applicable Canadian securities laws.

In connection with the offering, the company has paid the syndicate led by Cormark and Canaccord a cash commission of 6 per cent of the gross proceeds of the offering and reimbursed it for certain reasonable expenses and fees.

Great Bear is currently engaged in a 90,000-metre drill hole program at its flagship Dixie property, which is expected to continue through 2019 and 2020.

The offering is subject to final acceptance by the TSX Venture Exchange.

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. 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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