Great Bear raising C$37m for Red Lake gold exploration

Great Bear Resources has entered into an agreement with Cormark and CIBC Capital Markets to act as co-lead underwriters and joint bookrunners for the purchase of 2 million flow-through common shares of the company on a bought-deal private placement basis at C$18.6 per share.

The gross proceeds to the company are estimated at C$37.2 million, and are expected to be used for exploration expenses at the company’s properties in Ontario. Closing is expected around Feb. 18.

Earlier this week, the company announced drill results from seven drill holes completed over 200 metres of strike along the LP fault at the company’s Dixie gold project in Ontario’s Red Lake district. According to Chris Taylor, Great Bear’s president and CEO, the near-surface intercepts targeted a high-grade domain of this fault, and show “exceptional continuity of high-grade gold mineralization extending to bedrock surface.” Highlights include 34.9 metres of 10.01 g/t gold from 50.5 metres; 10.4 metres of 15.25 g/t gold starting at 63 metres; and 11.8 metres of 15.68 g/t gold from 75.6 metres.

On Jan. 13, Great Bear also released assay results for 22 holes drilled into the LP fault.

Great Bear has a C$25 million exploration program planned for 2021 at Dixie, planning to drill over 130,000 metres.

Results for an additional 50 holes are expected by the end of February.

(This article first appeared in the Canadian Mining Journal)