Great Bear Resources (TSXV: GBR) is raising $33 million in an upsized (from $20 million previously) bought deal private placement. The syndicate of underwriters is led by Canaccord Genuity, with Great Bear issuing 1.47 million flow-through shares at $17 per share and 725,000 common shares at $11.04 each.
Gross proceeds from the flow-through portion of the offering will be allocated towards eligible exploration expenses at the company’s projects in Ontario, whereas proceeds from the common share component are intended for both exploration and corporate purposes. Closing is expected around June 2.
The offering follows drill results from hole BR-085, which was extended down to a depth of 1,509 metres from 524 metres, previously. Hole BR-085 intersected 19 metres of 10.19 grams gold per tonne, doubling the vertical depth of the Dixie Limb zone at the company’s 91-sq.-km Dixie gold property, near Red Lake.
Mineralization at Dixie has been intersected along an 11-km long section of the LP fault zone, as well as along 500 metres of both the Dixie Limb and Hinge zones.
The deepened iteration of hole BR-085 returned the deepest, widest and highest-grade interval from the Dixie Limb zone to date, at 740 metres below surface. This hole also intercepted gold-bearing veins down to 840 metres below surface, which may be depth extensions of the Hinge zone, suggesting potential for these two areas of mineralization to merge at depth.
“With our first deep drill hole, we have doubled the known vertical extent of the Dixie Limb and intersected new Hinge zone style veins that may represent extensions to the Hinge zone,” Chris Taylor, the company’s president and CEO, said in a press release. “Results also suggest the Dixie Limb and Hinge zone veins may merge at depth, an idea we are keen to test with further drilling.”
Taylor added that, based on this new core from BR-085, this is the first time that the company has seen Dixie Limb and Hinge zone style gold mineralization in close proximity to each other. Additional holes drilled along the LP fault are well suited for additional extensions to target the Dixie Limb and Hinge zones at depth, these remain open.
The majority of exploration work this year at Dixie will consist of 300 drill holes along a 5-km by 500-metre grid along the LP fault, with additional deep drilling planned for all of the gold zones.
The company closed at $11.50 per share on May 12. In the last year, the company’s shares have traded within a range of $2.25 and $13.19. The junior has 48 million common shares outstanding for a $549-million market capitalization.
— This article first appeared in our sister publication, MINING.com.
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