TSX-V: GBR
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
THE UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
VANCOUVER, BC, June 2, 2020 /CNW/ - Great Bear Resources Ltd.
(the "Company" or "Great Bear", TSX-V: GBR) is
pleased to announce that it has closed the bought deal private
placement (the "Offering") 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) (the "Flow-Through
Shares") at a price of C$17.00
per Flow-Through Share, and 725,000 common shares of the Company
(the "Common Shares" and together with the Flow-Through
Shares, the "Offered Shares") 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. (together, the "Underwriters"). 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.
Webinar
The Company would like to invite interested shareholders to join
Great Bear management for a webinar detailing recent progress in
the Company's ongoing fully-funded 110,000 metre drill program at
its 100% owned Dixie property in the Red
Lake district of Ontario.
The webinar will take place on Thursday,
June 11th at 11:15am
PDT/2:15pm EDT.
Management will be available to answer questions following
the presentation. Online registration and participation details may
be found at the following link:
https://register.gotowebinar.com/register/3408563418758052620?source=WS
For those unable to participate, a recording of the webinar will
be posted to the Company's web site following the live
broadcast.
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.
ON BEHALF OF THE BOARD
"Chris Taylor"
Chris Taylor, President and
CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary note regarding forward-looking statements
This news release contains certain "forward
looking statements" and certain "forward-looking information" as
defined under applicable Canadian and U.S.
securities laws. Forward-looking statements and information can
generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate",
"believe", "continue", "plans" or similar
terminology. The forward-looking information contained herein is
provided for the purpose of assisting readers in
understanding management's current expectations and plans relating
to the future. Readers are cautioned that such
information may not be appropriate for other purposes.
Forward-looking statements and information include, but are
not limited to, statements in respect of the Offering
including the proposed use of proceeds, funding for continuous
exploration drilling and updated exploration program plans.
Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
the actual actions, events or results to be
materially different from those expressed or implied by such
forward-looking information, including but not
limited to: the requirement for regulatory approvals; enhanced
uncertainty in global financial markets as a result of the current
COVID-19 pandemic; unquantifiable risks related
to government actions and interventions; stock
market volatility; regulatory restrictions; and other related risks
and uncertainties.
Forward-looking information are based on management of the
parties' reasonable assumptions, estimates,
expectations, analyses and opinions, which are
based on such management's experience and perception of trends,
current conditions and expected developments,
and other factors that management believes are relevant and
reasonable in the circumstances, but which may
prove to be incorrect.
Great Bear undertakes no obligation to update forward-looking
information except as required by applicable law.
Such forward-looking information represents
management's best judgment based on information currently
available. No
forward-looking statement can be
guaranteed and actual future results may vary materially.
Accordingly, readers are advised not to place
undue reliance on forward-looking statements or
information.
SOURCE Great Bear Resources Ltd.