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TSX-V:
GBR
VANCOUVER, July 3, 2019 /CNW/ - Great Bear Resources Ltd.
(TSX-V: GBR) ("Great Bear" or the "Company") is pleased to
announce that it has closed an over-subscribed "bought deal"
private placement financing (the "Offering"), previously announced
on June 12, 2019, and upsized on
June 13, 2019, through a syndicate of
underwriters led by Cormark Securities Inc. ("Cormark") and
including Canaccord Genuity Corp. (collectively, the
"Underwriters").
Both the upsized offering of 1,500,000 shares, and 500,000
"additional shares" that were available for distribution, have been
fully subscribed. The Company will now issue 2,000,000 common
shares that qualify as "flow-through shares" for the purposes of
the Income Tax Act (Canada)
("Flow-Through Common Shares") at a price of $5.45 per Flow-Through Common Share, for
aggregate gross proceeds to the Company of approximately
C$10,900,000.
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 December 31,
2019.
The Flow-Through Shares are subject to a four-month and one day
hold period expiring on November 4,
2019, in accordance with applicable Canadian securities
laws.
In connection with the Offering, the Company has paid the
syndicate led by Cormark a cash commission of 6% of the gross
proceeds of the Offering and reimbursed it for certain reasonable
expenses and fees.
Chris Taylor, President and CEO
of Great Bear said, "Interest in this placement was overwhelming,
and we've successfully raised double the funding we were initially
looking for. We'd like to sincerely thank our new and
existing shareholders for their continued interest in our company's
success and growth, and we look forward to delivering a wealth of
new exploration results from our flagship Dixie project throughout
2019 and 2020."
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
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
This new release contains 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 statements or other reports and filings with the
TSX Venture Exchange and applicable Canadian securities regulators.
We do not assume any obligation to update any forward-looking
statements, other than as required by securities laws.
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.
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.
SOURCE Great Bear Resources Ltd.