Great Bear Receives Approval to Option its 50 Percent Interest in Golden Triangle Properties
Vancouver, British Columbia--(Newsfile Corp. - September 1, 2017) - Great Bear Resources (TSXV: GBR) (the "Company" or "Great Bear") today announced that it has received final approval of the TSX Venture Exchange (the "Exchange") to grant the option to its joint venture partner, Mountain Boy Minerals Ltd. (TSX-V: MTB; "Mountain Boy"), to acquire the Company's 50 percent interest in and to each of the "BA" and "Surprise Creek" joint ventures and associated properties.The option agreement was originally announced on June 5, 2017.
Under the option agreement, Mountain Boy will pay:
$1.3 million in stages between August 20, 2017 and August 20, 2020, including $300,000 in 2017,
Issue the Company a total of 10 million shares in stages between the date of Exchange acceptance and April 15, 2020,
$200,000 upon completion of a NI 43-101 compliant Mineral Resource at the Surprise Creek property,
$200,000 upon completion of a pre-feasibility Study on the Surprise Creek property,
$800,000 upon commencement of construction of a mine to extract ore from the Surprise Creek property,
$400,000 upon completion of a NI 43-101 compliant Mineral Resource at the BA property,
$500,000 upon completion of a pre-feasibility study on the BA property,
$1,600,000 upon commencement of construction of a mine to extract ore from the BA property, and
Great Bear will retain a Right of First Refusal on the sale of both the Surprise Creek and BA properties, should Mountain Boy enter into sale agreement on either project in whole or in part with a third party.
Great Bear will continue to focus on its Red Lake, Ontario gold projects,Dixie Lake and West Madsen.The Dixie Lake property overlies a structurally-controlled from-surface gold-mineralized zone with over 1.7 kilometres of strike length and several satellite zones.The project is located 20 kilometres south of Red Lake and is accessible by road year-round.Over 160 drill holes were completed between the late 1980's and 2012 at the Dixie Lake project, with an additional 8 drill holes completed by Great Bear in July 2017 from which assays are pending.Highlights of historical drilling include 12.34 m of 7.54 g/t gold, and 3.82 m of 17.22 g/t gold.Great Bear has the option to purchase a 100% interest and all royalties to the Dixie Lake project for $170,000 in total payments.
The Company is similarly purchasing a 100% interest in the West Madsen gold project, with remaining payments of $58,000 over the next three years.The West Madsen project is subject to a 1.5% net smelter return ("NSR") to the underlying vendor, half of which can be bought for $500,000.Great Bear has a right of first refusal on the sale of the remaining 0.75% of the NSR.
The West Madsen project consists of two claim blocks located along the newly identified geological continuity of the Balmer assemblage greenstone belt which hosts the adjacent historical Madsen and Starratt Olsen mines.Recent logging road construction has opened the area to cost-effective exploration for the first time.The eastern block is situated 3 kilometres to the west of Pure Gold Mining's ("Pure Gold") Madsen property; each block is roughly 6 kilometres by 3 kilometres in size, for a total area of 2000 hectares.
Between the Dixie Lake project and the West Madsen project, Great Bear now controls 4400 hectares of the prospective greenstone belts which host all of the active mines and past producers in the Red Lake district.
Mr. R. Bob Singh, P.Geo, Director and VP Exploration for Great Bear, is the Qualified Person as defined by National Instrument 43-101 responsible for the accuracy of technical information contained in this news release.
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 OF DIRECTORS
"Chris Taylor"
Chris Taylor, President and CEO
Inquiries:
Tel: 604-646-8354
Fax: 604-646-4526
info@greatbearresources.ca
www.greatbearresources.ca
Neither 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.
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, other than as required by applicable securities laws.