Great Bear Resources Ltd (CVE:GBR) (OTCMKTS:GTBDF) released bright news Wednesday that it has closed its bought deal private placement, raising C$10.9 million, which is being led by a syndicate of underwriters led by Cormark Securities, including Canaccord Genuity.
The firm said strong investor demand doubled the amount of funds raised, which will go towards Great Bear's flagship wholly owned Dixie Project in the Red Lake District of Ontario.
"Interest in this placement was overwhelming, and we've successfully raised double the funding we were initially looking for," said CEO Chris Taylor. "We'd like to sincerely thank our new and existing shareholders for their continued interest in our company's success and growth, and we look forward to delivering a wealth of new exploration results from our flagship Dixie project throughout 2019 and 2020."
At the end of May, the firm made a new discovery, called the Bear-Rimini zone, which showed multiple shallow gold zones. The firm is currently completing its drill program, part of an ongoing 90,000 metre drill program, which is expected to continue through 2019 and 2020.
The firm said 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 issue 2 million shares, which qualify as flow-through shares a price of $5.45 each, raising gross proceeds of C$10.9 million.
Flow-through shares are a unique financing vehicle for junior resource companies in Canada, allowing investors to receive tax incentives.
The flow-through shares are subject to a four-month and one day hold period. The offering is subject to regulatory approval.
Shares of Great Bear were on the rise on Wednesday, up 7% at C$4.28 in Toronto.
Contact Katie Lewis at [email protected]