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Great Bear Resources upsizes previously announced offering to C$33M

The firm will also issue 725,000 shares at C$11.04 each for aggregate gross proceeds of C$33,004,200

Great Bear Resources -
The gross proceeds will be used for Canadian exploration expenses at Great Bear's projects in Ontario

Great Bear Resources Ltd (CVE:GBR), the owner of the Dixie gold project in Ontario, has upsized its earlier announced bought deal placing to around C$33 million gross from C$20 million.

Earlier on Tuesday, the explorer said Canaccord Genuity will act as lead underwriter of a syndicate. The latter will now buy over 1.47 million shares that qualify as 'flow-through' shares of Great Bear at C$17 a throw on a "bought deal" private placement basis.

The firm will also issue 725,000 shares at C$11.04 each for aggregate gross proceeds of C$33,004,200.

READ: Great Bear Resources reports blockbuster hole that doubles depth of gold mineralization at Dixie project

The gross proceeds will be used for Canadian exploration expenses at Great Bear's projects in Ontario and the offering is scheduled to close on or around June 2 this year.

A flow-through share is a type of share issued by a corporation to a taxpayer and sees the issuing firm agree to incur eligible exploration expenses in an amount up to the consideration paid for the shares. The firm then 'renounces' the amount of the expenditure so that the expenses are considered to be the taxpayer's expenses for tax purposes.

Great Bear said that it will renounce these expenses to the purchasers no later than December 31 this year.

The firm is focused in the prolific Red Lake gold district in northwest Ontario, where it controls 300 square kilometers of highly prospective tenure across four projects - the Dixie project, the Pakwash property, the Dedee property and the Sobel property.

On Monday, Great Bear said it had hit the deepest and highest-grade interval to date on its flagship Dixie project. The hole hit deep extensions of the Dixie Limb around 740 metres below surface and new Hinge zone-style veins around 840 metres below surface, which doubles the known depth of gold mineralization.

Contact the author at [email protected]

---Updates for upsizing---

Quick facts: Great Bear Resources

Price: 18.85 CAD

TSX-V:GBR
Market: TSX-V
Market Cap: $941.28 m
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