Great Bear Resources Ltd (CVE:GBR, OTCMKTS:GTBDF) said Thursday that it has closed a C$3.5 million private placement of shares to pay for an expansion of gold exploration in Ontario’s Red Lake mining district.
The Vancouver-based miner issued 1 million flow-through common shares at a price of C$3.50 per share. The company said it paid its underwriter, Toronto-based Cormark Securities Ltd, a cash commission of 6% of the gross proceeds of the offering.
READ: Great Bear Resources makes new gold discovery at Dixie and drills highest grade to date
The offering is subject to final acceptance by the TSX Venture Exchange. Under a flow-through structure, the investors rather than the company are taxed on revenue. The flow-through shares are subject to a holding period of four months and one day expiring on March 15.
Great Bear expects that its 150-drill-hole program at its Dixie property will extend through 2019. Expanded work may include additional drilling and geophysical surveys. The Red Lake mining district has produced more than 30 million ounces of gold, according to Great Bear.
Shares of Great Bear slipped C$0.30 to C$2.44 at the close Wednesday on the Canadian Venture Exchange. They were down US$0.21 to US$1.84 on the OTC market.
Contact Dennis Fitzgerald at dennis@proactiveinvestors.com