Mr. Chris Taylor reports
GREAT BEAR RESOURCES ANNOUNCES $10 MILLION PRIVATE PLACEMENT, INVESTMENT FROM ROB MCEWEN AND MCEWEN MINING
Great Bear Resources Ltd. will be conducting a private placement financing of units, priced at $1.45 per unit, for gross proceeds of up to $10-million.Each unit will consist of one common share and one-half of one common share purchase warrant.Each whole warrant will be exercisable into a common share of Great Bear at a price of $1.75 for a period of two years.
The company is pleased to announce that Rob McEwen has agreed to purchase $4.8-million of the financing and that McEwen Mining Inc. has agreed to purchase $1.2-million of the financing for a total of $6-million.On completion of the financing, Mr. McEwen and McEwen Mining will collectively own 18.8 per cent of Great Bear Resources on a partially diluted basis.
"We are very pleased to have Rob McEwen as a partner of Great Bear Resources.His record of success in the Red Lake district is quite simply unmatched," said Chris Taylor, president and chief executive officer of Great Bear."We will now be funded to achieve significant milestones at our Dixie project, and anticipate positive opportunities for our shareholders as we advance these new high-grade gold discoveries."
"I'm excited to join the Great Bear team in the development of what I believe could be a significant new gold discovery in the Red Lake camp," added Rob McEwen."Their technical work is excellent and I'm delighted to join forces with them to further unlock, once again, the riches of the world-class Red Lake gold camp."
The proceeds from the financing will be used for exploration and drilling in Red Lake, Ont., as well as for general working capital purposes.
A portion of the financing will be brokered by IBK Capital Corp. of Toronto including units to be purchased by Mr. McEwen and McEwen Mining.Great Bear has agreed to pay IBK a cash commission equal to 6 per cent of the amount raised by IBK and to issue to IBK broker warrants equal to 6 per cent of the number of units sold to investors introduced by IBK. Each broker warrant will be exercisable into a unit at $1.45 per unit for a period of one year.Finders' fees may be payable on the non-brokered portion of the financing on the same basis as the brokered portion of the financing.
The financing is subject to all necessary regulatory approvals, including acceptance by the TSX Venture Exchange. The securities to be issued in the financing will be subject to a four-month hold period in accordance with applicable Canadian securities laws.
About Great Bear Resources Ltd.
Great Bear is earning a 100-per-cent royalty-free interest in the Dixie property which consists of 9,140 hectares in the Red Lake district covering a drill and geophysically defined multikilometre gold mineralized structure similar to that hosting other producing gold mines in the district. The project has seen over 190 drill holes to date and has yielded high-grade near-surface gold results from several gold zones hosted at an extensive mineralized geological contact -- the Dixie Limb zone. In addition, Great Bear is also earning a 100-per-cent royalty-free interest in its West Madsen properties which total 3,860 hectares and are contiguous with Pure Gold Mining Inc.'s Madsen property. All of Great Bear's Red Lake projects are accessible year-round through existing roads.
R. Bob Singh, PGeo, director and vice-president of 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.
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