Drill Program Starting..NewsBear Lake Gold Announces Closing of Tranche 1 of Private Placement for $2,552,002 and Drilling Program to Start
LONGUEUIL, QUEBEC--(Marketwire - June 22, 2010) - Bear Lake Gold Ltd. (TSX VENTURE:BLG)
Bear Lake Gold Ltd. (the "Company" or "Bear Lake") is pleased to announce that it has closed the first tranche of the non-brokered private placement announced on May 28, 2010 (the "Financing").
Under the first tranche of the Financing, the Company has issued 5,650,000 "flow-through" common shares of the Company ("FT Shares") at a price of
.20 per FT Share and 7,900,009 units of its securities ("Units") at a price of
.18 per Unit, for gross proceeds of $2,552,002. Of this, the MineralFields Group subscribed for 5,000,000 of the FT Shares for gross proceeds of $1,000,000. Each Unit consists of one common share of Bear Lake (a "Share") and one common share purchase warrant (a "Warrant"), with each Warrant exercisable to acquire one Share at
.30 per Share for a period of 24 months from the closing date of the Financing. The Warrants are subject to a right of accelerated expiry at the Company's option where the closing price of the Shares on the TSX Venture ("TSXV") has exceeded
.50 for twenty consecutive trading days at any time after four months and one day from closing of the Financing.
The Company expects to close the balance of the Financing within the next two weeks.
The Company has paid a cash commission of $70,000 and issued 350,000 finder's warrants in connection with FT Shares sold in tranche 1, exercisable at
.25 to acquire one Share for 24 months from closing. In respect of Units sold under tranche 1, the Company has issued 433,000 Units in lieu of a cash commission and an additional 433,000 finder's warrants, exercisable at
.25 to acquire one unit (with the same attributes as the Units) for 24 months.
All securities issued under tranche 1 of the Financing are subject to a hold period under applicable securities laws until October 22, 2010.
The Company intends to use the gross proceeds of the sale of FT Shares mainly for exploration on its Larder Lake project. The Company intends to use the net proceeds from the sale of Units for general corporate purposes and exploration work.
The Company expects to initiate a drilling campaign of approximately 15,000 meters on its Larder Lake project within the next two weeks. The campaign will mainly target the upper part of the Bear Lake zone at depths between 400m and 1,200m from surface with the objective to define and expand the higher grade mineralized lenses, including both the Carbonate and Flow-type mineralized horizons.
Forward-Looking Information
This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the Company's plans to complete the balance of the Financing on the terms announced, as well as its plans for the drill program to be carried out at Larder Lake, including without limitation, the timing and expected results of exploration. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to capital markets and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.
About MineralFields Group
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealers Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies through First Canadian Securities ®.
About Bear Lake Gold
Bear Lake Gold is engaged in the exploration of gold and precious mineral properties in North America. Additional information about the Company is available on the Company's website, www.bearlakegold.com and on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact
Bear Lake Gold Ltd.
Francois Viens
President and CEO
450-677-1009
450-677-2601 (FAX)
fviens@bearlakegold.com
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