Great Bear Resources Ltd. (CVE:GBR) has said its exploration program is now fully financed through 2022 after closing the 'bought-deal' private placement announced on January 21, 2021.
The company said the offering was oversubscribed, with 14 institutional investors from across North America, Australia and Europe participating. Post-financing, Great Bear noted that it has 57.0 million common shares issued and outstanding, and over C$100 million in cash.
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Under the offering, the company issued a total of 3,225,000 'flow-through' shares at a price of C$18.60 each, and 784,000 common shares of the company at a price of C$12.75 each for aggregate gross proceeds to the company of C$69,891,000.
In a statement, Chris Taylor, president and CEO of Great Bear commented: "We now have the financial resources to increase the planned scope of our 2021 and 2022 exploration programs in order to more rapidly and fully advance our flagship Dixie project to the potential benefit of our shareholders. We will provide a more detailed update on these expanded work plans within the coming days."
The cffering was co-led by Cormark Securities and CIBC Capital Markets and included Canaccord Genuity, PI Financial Corp., and BMO Nesbitt Burns. In consideration for their services, the underwriters received a cash commission equal to approximately 5.5% of the gross proceeds of the offering.
The gross proceeds from the sale of flow-through Shares 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 December 31, 2021.
The net proceeds from the sale of common shares will be used to fund exploration activities and for general corporate purposes. The offered shares have a hold period of four months and one day from closing, expiring on June 26, 2021.
Great Bear Resources is a 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 5 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