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TSX-V: GBR
VANCOUVER, Nov. 7, 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. and Canaccord Genuity Corp. to act as co-lead
underwriters of a syndicate of underwriters (collectively, the
"Underwriters"), pursuant to which the Underwriters shall purchase
1,750,000 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 $8.35 per
Flow-Through Common Share, on a "bought deal" private placement
basis, for aggregate gross proceeds to the Company of approximately
C$14.6 million (the "Offering").
The Company has also granted the Underwriters an option to sell up
to an additional 250,000 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 November 27, 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.
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.
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 hosts different styles of gold
mineralization. High-grade gold-bearing quartz veins and
silica-sulphide replacement zones hosted by mafic volcanic rocks,
and localized near regional-scale D2 folds, occur at the Dixie Limb
and Hinge Zones. These mineralization styles are also typical of
the significant mined deposits of the Red
Lake district.
The LP Fault is a large trans-crustal deformation zone that is
interpreted to traverse the Dixie property for approximately 18.5
kilometres of strike length and has been drilled along
approximately 3.5 kilometres of strike length to-date. It hosts
high-grade gold mineralization that is controlled by structural and
geological contacts, and low to moderate grade disseminated gold
that surrounds and flanks the high-grade intervals. The dominant
gold-hosting stratigraphy consists of felsic sediments and volcanic
units.
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. All of Great Bear's Red
Lake projects are accessible year-round through existing
roads.
For further information please contact Mr. Chris Taylor, P.Geo, President and CEO at
604-646-8354, or Mr. Knox Henderson, Investor Relations, at
604-551-2360.
ON BEHALF OF THE BOARD
"Chris
Taylor"
Chris Taylor,
President and CEO
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.