Mr. Chris Taylor reports
GREAT BEAR EXPANDS RED LAKE DRILLING TO 10,000 METRES AND ANNOUNCES PRIVATE PLACEMENT
Great Bear Resources Ltd. has expanded its continuing 3,000-metre drill program in the Red Lake district, Ontario, to 10,000 metres.
Great Bear's president and chief executive officer Chris Taylor said: "We have completed eight of 12 planned drill holes, and are expanding our current work program to include up to 10,000 total metres of drilling and up to 30 additional drill holes.We will continue to explore our high-grade gold zones at Dixie Lake and their extensions, as well as newly defined gold-bearing structures at West Madsen."
Drilling is expected to conclude at Dixie Lake in the coming days due to spring thaw, but will resume approximately one month later when road access is clear.Assay results from the current drilling are expected to be available at that time for further drill planning purposes.A concurrent field program consisting of geological mapping, prospecting, trenching and drill targeting will be undertaken from May to August at both Dixie Lake and West Madsen.
Private placement
To finance the expanded drill program, and subject to regulatory approval, the company will undertake a non-brokered private placement consisting of both non-flow-through and flow-through unit offerings.The company will issue up to four million non-flow-through units and up to 3,448,276 flow-through units, for total gross proceeds of up to $2-million.
Each non-flow-through unit will be issued at a price of 50 cents and will consist 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 will be 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.
Each flow-through unit will be issued at a price of 58 cents and will consist 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 will be subject to acceleration on the same terms as the non-flow-through unit warrants.
The securities issued by Great Bear in connection with the private placement will be subject to a four-month hold period as prescribed by applicable securities laws.Insiders may participate for a portion of the placement.Finders' fees may be payable as part of this transaction.
Project update
All drill holes completed to date during phase 2 drilling at the company's flagship Dixie Lake project have successfully reached target depths and all results are pending at the time of this news release.Core logging continues, and five of the eight completed drill holes have been sent for assay to Activation Laboratories Ltd. in Ancaster, Ont., an accredited mineral analysis laboratory, for analysis.
The company has noted increased claim staking and drilling activity in the immediate vicinity of its West Madsen property, which is contiguous with the Madsen mine property of Pure Gold Mining Inc. Recent drill results reported by Pure Gold at Madsen include 8.3 metres of 33.3 grams per tonne gold and 2.0 m of 22.5 g/t gold from the wedge zone, located less than 1.5 kilometres from Great Bear's West Madsen claims.Gold mineralization at the Wedge zone has been reported by Pure Gold to be hosted by blue-grey quartz veins and controlled by a major through-going structure.This structure strikes towards Great Bear's property.
Three major gold-bearing structural trends have been identified at West Madsen using the company's 2017 high-resolution airborne magnetic survey combined with historical assessment work and the company's own prospecting.These cross several kilometres of strike length at Great Bear's West Madsen block A.One of these trends is interpreted to represent the on-strike extension of the structural corridor that also hosts the wedge zone.This trend is known to be gold bearing on Great Bear's property, as prospecting within a large exploration trench during summer 2017 returned 0.9 g/t gold from a broad area of silicified, sulphide-bearing alteration (see Great Bear news release of Nov. 14, 2017).
Maps of Great Bear's projects and summaries of results to date can be found at the company's website.
About Great Bear Resources Ltd.
Great Bear is earning a 100-per-cent royalty-free interest in the Dixie Lake property which consists of 7,106 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 160 drill holes to date and has yielded high-grade near-surface gold results including 10.40 metres of 16.84 grams per tonne gold. 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 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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