Great Bear Resources Ltd. (TSX-V: GBR) is pleased to announce that it has closed the bought deal private placement announced on May 12, 2020.
Pursuant to the Offering, the Company issued a total of 1,470,600 common shares of the Company that qualify as “flow-through shares” for the purposes of the Income Tax Act (Canada) at a price of C$17.00 per Flow-Through Share, and 725,000 common shares of the Company at a price of C$11.04 per Common Share for aggregate gross proceeds of C$33,004,200.
The Offering was completed through a syndicate of underwriters led by Canaccord Genuity Corp. and which included Cormark Securities Inc., PI Financial Corp., Stifel GMP, BMO Nesbitt Burns Inc., Eight Capital, National Bank Financial Inc. and Paradigm Capital Inc. (In consideration for their services, the Underwriters received an aggregate cash commission equal to 6.0% of the gross proceeds of the Offering.
The gross proceeds from the sale of Flow-Through Shares 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 December 31, 2020. The net proceeds from the sale of Common Shares will be used to fund exploration activities and for general corporate purposes.
The Offered Shares have a hold period of four months and one day from closing, expiring on October 5, 2020.
Great Bear has approximately $53 million in cash and is fully funded for continuous exploration drilling through 2022. Updated exploration program plans will be provided by the Company in the near future.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Offered Shares in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Great Bear
Great Bear Resources Ltd. is a well-financed gold exploration company managed by a team with a track record of success in mineral exploration. Great Bear is focused in the prolific Red Lake gold district in northwest Ontario, where the company controls over 300 km2 of highly prospective tenure across 4 projects: the flagship Dixie Project (100% owned), the Pakwash Property (earning a 100% interest), the Dedee Property (earning a 100% interest), and the Sobel Property (earning a 100% interest), all of which are accessible year-round through existing roads.
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