/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
THE UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
VANCOUVER, BC, Feb. 25, 2021 /CNW/ - Great Bear Resources Ltd.
(the "Company" or "Great Bear", (TSXV: GBR) is pleased to announce
that it has closed the bought deal private placement (the
"Offering") announced on January 21,
Pursuant to the Offering, the Company issued a total of
3,225,000 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$18.60 per
Flow-Through Share, and 784,000 common shares of the Company (the
"Common Shares" and together with the Flow-Through Shares, the
"Offered Shares") at a price of C$12.75 per Common Share for aggregate gross
proceeds to the Company of C$69,891,000. Post-financing, Great Bear
has 57.0 million common shares issued and outstanding, and over
C$100 million in cash. The
Company's exploration program is now fully financed through
The Offering was oversubscribed, with 14 institutional investors
from across North America,
Australia and Europe participating.
Chris Taylor, President and CEO
of Great Bear said, "We now have the financial resources to
increase the planned scope of our 2021 and 2022 exploration
programs in order to more rapidly and fully advance our flagship
Dixie project to the potential benefit of our shareholders.
We will provide a more detailed update on these expanded work plans
within the coming days."
The Offering was co-led by Cormark Securities Inc. and CIBC
Capital Markets and included Canaccord Genuity Corp., PI Financial
Corp., and BMO Nesbitt Burns Inc. (together, the "Underwriters").
In consideration for their services, the Underwriters received a
cash commission equal to approximately 5.5% 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, 2021. 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 June 26,
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.
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 330 km2 of highly prospective tenure across 5
projects: the flagship Dixie Project (100% owned), the Pakwash
Property (earning a 100% interest), the Dedee Property (earning a
100% interest), the Sobel Property (earning a 100% interest), and
the Red Lake North Property (earning a 100% interest) all of which
are accessible year-round through existing roads.
ON BEHALF OF THE BOARD
Chris Taylor, President and
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, and the funding of the
Company's exploration program.
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
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
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
SOURCE Great Bear Resources Ltd.