Mr. Chris Taylor reports
GREAT BEAR CLOSES $1,720,000 FINANCING AND RECEIVES ADDITIONAL $425,000 THROUGH WARRANT EXERCISES
Great Bear Resources Ltd. has closed a non-brokered private placement for gross proceeds of $1,720,252, subject to exchange approval.The company has also received $425,533 since the beginning of 2018 from the exercise of common share purchase warrants, for total fundraising of $2,145,785.
Chris Taylor, Great Bear's chief executive officer, said: "We thank our shareholders for their continued support despite volatile market conditions.Great Bear is now fully financed to complete the extended phase 2 drill program at our Dixie project which was announced on April 19, 2018.Drilling is slated to recommence in June, 2018.The extended program is expected to consist of a total of 10,000 metres of drilling testing various targets.Approximately 3,000 metres of drilling has been completed to date in 15 drill holes, from which we eagerly await results."
In connection with the current placement, the company has issued 1,565,000 non-flow-through units at a price of 50 cents, consisting of one common share and one-half of one common share purchase warrant entitling the holder to acquire one additional common share at a price 70 cents per share for a period of 24 months.The common share purchase warrants are subject to acceleration at the company's discretion in the event the company's common shares trade on a volume-weighted average price (VWAP) basis of 83 cents or more for a period of 10 consecutive trading days.
The company has also issued 1,616,814 flow-through units at a price of 58 cents, consisting of one common share and one-half of one common share purchase warrant entitling the holder to acquire one additional common share at a price 70 cents per share for a period of 24 months.The common share purchase warrants are subject to acceleration on the same terms as the non-flow-through warrants.
The securities issued by Great Bear in connection with the private placement are subject to a four-month hold period as prescribed by applicable securities laws.Insiders participated for a portion of the placement.Finders' fees of $71,946 and 132,900 brokers' warrants were issued in relation to closing of the placement.Brokers' warrants have the same terms as the non-flow-through and flow-through warrants.
Following issuance of securities related to this placement, Great Bear will have 23,106,169 common shares issued and outstanding.
Great Bear is earning a 100-per-cent royalty-free interest in the Dixie property which consists of 7,106 hectares.In addition, Great Bear is also earning a 100-per-cent royalty-free interest in its West Madsen properties which total 2,725 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, 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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