Great Bear Resources Ltd. (CVE:GBR) said the "bought deal" private placement agreement with Cormark Securities Inc. and CIBC Capital Markets, as co-lead underwriters and joint bookrunners of a syndicate, announced on Thursday, has been increased to now bring in aggregate gross proceeds for the company of $69.891 million.
The company will now issue 3,225,000 common shares that qualify as "flow-through shares" at a price of $18.60 each, and 784,000 common shares at a price of $12.75 each. Previously the offering was for just 2,000,000 flow-through common shares in the company at a price of $18.60 each for aggregate gross proceeds of C$37.2 million.
The company said the gross proceeds from the offering will be used to incur "Canadian exploration expenses" related to its projects in Ontario. The group will renounce these expenses to the purchasers with an effective date of no later than December 31, 2021.
READ: Great Bear Resources reports Dixie gold project drill results including 10 grams per ton over 34.9 metres
The offering is scheduled to close on or about February 18, 2021, 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.
Great Bear Resources is a well-financed gold exploration company managed by a team with a track record of success in mineral exploration. It is focused in the prolific Red Lake gold district in northwest Ontario, where the company controls over 330 square kilometres of highly prospective tenure across five projects: the flagship Dixie Project (100%-owned), the Pakwash Property (earning a 100% interest), the Dedee Property (earning a 100% interest), the Sobel Property (earning a 100% interest), and the Red Lake North Property (earning a 100% interest) all of which are accessible year-round through existing roads.
Contact the author at jon.hopkins@proactiveinvestors.com