Great Bear raises $3.5 million for Dixie Lake
Great Bear Resources Ltd. [GBR-TSXV] on Friday October 26 announced details of a $3.5 million private placement of flow-through common shares. Proceeds from the offering will be used to incur Canadian exploration expenses related to an expanded exploration effort at the company’s flagship Dixie Lake Project in northwestern Ontario.
Great Bear said Cormack Securities Inc. has committed to buying one million common shares that qualify as flow-through shares of the company at a price of $3.50 per flow-through common share on a bought deal basis. Aggregate proceeds will be $3.5 million.
The company has granted Cormack the option to sell up to an additional 150,000 flow-through common shares at the offering price up until the closing date on November 13, 2018.
Great Bear shares advanced on the news, rising 5.56% or 15 cents to $2.85. The shares are trading in a 52-week range of $3.50 and 26 cents.
Great Bear is attracting interest from major players, including Bay Street gold bug Rob McEwen, in part because its properties are located in a northwestern Ontario mining camp that has already produced about 30 million ounces of gold.
Geologists often say that the best place to make new discoveries is in the vicinity of existing deposits.
Its properties are located about 28 km from Goldcorp‘s [G-TSX; GG-NYSE] Red Lake Gold Mine, which has been in production since the late 1940s. That mine is expected to produce 235,000 ounces of gold this year at an all-in-sustaining cost of $1,000 an ounce.
Great Bear was in the news on September 27, 2018, when it reported a new high-grade gold discovery at its Dixie Project.
The company said the South Limb Zone (SLZ) discovery features some of the highest grade assays reported at Dixie to date, at a vertical depth of 75 metres. The best intercept returned 1.75 metres of 101.05 g/t gold, including 346.79 g/t gold over 0.5 metres within a vein zone of 10.35 metres of 18.23 g/t gold in drill hole DSL-004.
The SLZ is a large target with potential for several kilometres of strike length, the company said in a press release.
“The recent discovery of a new high-grade gold zone at the South Limb, together with multiple new drill targets related to D2 folding and newly discovered ultramafic units, has led us to plan for an increased scope of exploration activity at Dixie,” said Great Bear President and CEO Chris Taylor in a press release, Friday.
“Proceeds of the current placement will fund this expanded program and allow thorough concurrent exploration and the high-grade gold discoveries at the Dixie Limb and Hinge zones,” he said.
The company is currently engaged in a 30,000-metre, approximately 150 drill-hole program at the Dixie Lake property, which is expected to continue through 2018 and 2019. Expanded exploration work will be informed by ongoing results, and may include additional drilling, geophysical surveys, trenching, and downhole survey methods.