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TSX-V: GBR
VANCOUVER, Nov. 28, 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 November 7, 2019 through
a syndicate of underwriters led by Cormark Securities Inc.
("Cormark") and Canaccord Genuity Corp. ("Canaccord"), and
including PI Financial Corp. (collectively, the
"Underwriters").
Both the offering of 1,750,000 shares, and 250,000 "additional
shares" that were available for distribution, were fully
subscribed. Accordingly, the Company has issued 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 $8.35 per Flow-Through Common Share, for
aggregate gross proceeds to the Company of C$16,700,000.
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 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% 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
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 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.