Great Bear Resources Ltd. [GBR-TSXV; GTBAF-OTCQX] on Friday January 22 announced an upsized bought deal financing that is expected to raise almost $70 million for gold exploration in the Red Lake area of northwestern Ontario.
The announcement comes on the heels of the released of the latest batch of drill results from the company’s flagship Dixie Project.
The company said a syndicate of underwriters has agreed to increase the size of an offering that was originally expected to raise $37 million. As a result, the company will issue 3.2 million common shares that qualify as flow-through shares at $18.60 a share, as well as 784,000 common shares at $12.75 per share on a bought deal basis. Gross proceeds of the offering, which is expected to close on February 18, 2021, will amount to $69.89 million.
On Friday, Great Bear shares advanced on the news, rising 5.7% or 81 cents to $15.06, and now traded in a 52-week range of $19.83 and $3.68.
Great Bear is a gold exploration company with a focus on the Red Lake gold district where it controls 330 square kilometres of prospective tenure across five projects. They include the flagship Dixie Project, which covers 9,140 hectares and is located approximately 25 km southeast of Red Lake.
On January 20, 2021, the company reported the latest results from its ongoing $25 million exploration program at Dixie. Friday’s results consist of near-surface drill holes targeting the same high-grade domain on tight 25-metre centres along 200 metres of the LP Fault Zone, demonstrating exceptional continuity of high-grade gold mineralization, extending to bedrock surface.
Specifically, the company released seven additional LP Fault drill holes over 200 metres of strike length on seven drill sections.
New shallow high-grade drill results between bedrock surface and approximately 70 vertical metres depth include 10.01 g/t gold over 34.85 metres from 50.50 to 85.35 in drill hole BR-218. This included a high-grade core of 106.40 g/t gold over 2.25 metres from 77.70 to 79.95 metres.
Great Bear said it has now published results from 227 LP Fault drill holes and anticipates up to 400 LP Fault drill holes will be completed by the end of 2021.