Great Bear closes private placement for $10.9-million
2019-07-03 16:06 ET - News Release
Mr. Chris Taylor reports
GREAT BEAR CLOSES C$10.9 MILLION OVER-SUBSCRIBED BOUGHT DEAL PRIVATE PLACEMENT
Great Bear Resources Ltd. has closed an oversubscribed bought deal private placement financing, previously announced on June 12, 2019, and upsized on June 13, 2019, through a syndicate of underwriters led by Cormark Securities Inc. and including Canaccord Genuity Corp.
Both the upsized offering of 1.5 million shares and 500,000 additional shares that were available for distribution have been fully subscribed. The company will now issue two million common shares that qualify as flow-through shares for the purposes of the Income Tax Act (Canada) at a price of $5.45 per flow-through common share, for aggregate gross proceeds to the company of approximately $10.9-million.
The proceeds of the offering will be used to incur Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)) related to Great Bear's projects in the Red Lake district of Ontario. The company will renounce these expenses to the purchasers with an effective date of no later than Dec. 31, 2019.
The flow-through shares are subject to a four-month-and-one-day hold period expiring on Nov. 4, 2019, in accordance with applicable Canadian securities laws.