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TSX-V: GBR
VANCOUVER, June 12, 2019 /CNW/ - Great Bear Resources
Ltd. (TSXV:GBR) ("Great Bear" or the "Company") is pleased to
announce that it has entered into an agreement with Cormark
Securities Inc. ("Cormark") to act as lead underwriter of a
syndicate of underwriters that includes Canaccord Genuity Corp.
(collectively, the "Underwriters"), pursuant to which the
Underwriters shall purchase 1,000,000 common shares that
qualify as "flow-through shares" of the Company for the purposes of
the Income Tax Act (Canada)
("Flow-Through Common Shares") 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 C$5.45 million (the "Offering"). 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 December 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 CEO
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."
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities 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. (TSX-V: GBR) is a well
financed company based in Vancouver,
Canada, managed by a team with a track record of success in
the mineral exploration sector. Great Bear holds a 100% 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, Ontario.
The Red Lake mining district is
one of the premier mining districts in Canada, benefitting from major active mining
operations including the Red Lake Gold Mine of Newmont Goldcorp
Corp., plus modern infrastructure and a skilled workforce.
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. The Dixie property covers a drill and
geophysically defined multi-kilometre gold mineralized structure
similar to that associated with other producing gold mines in the
district. In addition, Great Bear is also earning a 100%
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. All of Great Bear's Red Lake projects are accessible year-round
through existing roads.
ON BEHALF OF THE BOARD
"Chris
Taylor"
Chris Taylor, President and
CEO
Inquiries:
Tel: 604-646-8354
Fax: 604-646-4526
info@greatbearresources.ca
www.greatbearresources.ca
Forward-Looking Information
This new release may contain forward-looking statements.
These statements are based on current expectations and assumptions
that are subject to risks and uncertainties. Actual results could
differ materially because of factors discussed in the management
discussion and analysis section of our interim and most recent
annual financial statement or other reports and filings with the
TSX Venture Exchange and applicable Canadian securities
regulations. We do not assume any obligation to update any
forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Great Bear Resources Ltd.