Mr. Chris Taylor reports
GREAT BEAR ANNOUNCES C$3.5 MILLION PRIVATE PLACEMENT OF FLOW-THROUGH COMMON SHARES
Great Bear Resources Ltd. has entered into an agreement with Cormark Securities Inc., pursuant to which Cormark has agreed to purchase one million common shares that qualify as flow-through shares of the company for the purposes of the Income Tax Act (Canada) at a price of $3.50 per flow-through common share, on a bought deal private placement basis, for aggregate gross proceeds to the company of approximately $3.5-million. The company has also granted Cormark an option to sell up to an additional 150,000 flow-through common shares at the offering price up to the closing date.
The proceeds from 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 Ontario. The company will renounce these expenses to the purchasers with an effective date of no later than Dec. 31, 2018.
The offering is scheduled to close on or about Nov. 13, 2018, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.
Chris Taylor, president and chief executive officer of Great Bear, said: "The recent discovery of a new high-grade gold zone at the South Limb, together with multiple new drill targets related to D2 folding and newly discovered ultramafic units, have led us to plan for an increased scope of exploration activity at Dixie.Proceeds of the current placement will fund this expanded program and allow thorough concurrent exploration of the high-grade gold discoveries at the Dixie Limb and Hinge zones."
The company is currently engaged in a 30,000-metre, approximately 150-drill-hole program at its flagship Dixie property, which is expected to continue through 2018 and 2019.Expanded exploration work will be informed by ongoing results, and may include additional drilling, geophysical surveys, trenching and downhole survey methods.
About Great BearResources Ltd.
Great Bear is earning a 100-per-cent royalty-free interest in the Dixie property for remaining payments totalling $110,000 over three years. The property consists of 9,140 hectares located an approximate 15-minute drive along Highway 105 from downtown Red Lake, Ont. The Red Lake mining district has produced over 30 million ounces of gold and is one of the premier mining districts in Canada, benefiting from major active mining operations including the Red Lake gold mine of Goldcorp Inc., plus modern infrastructure and a skilled work force. The Dixie property covers 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 200 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.
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