ANNOUNCES HIGH-GRADE DISCOVERY; DRILLS 16.35 M OF 26.91 G/T GOLD AND 7.00 M OF 44.47 G/T GOLD IN TWO HOLES AT HINGE ZONE, DIXIE PROJECT, RED LAKE DISTRICT
Great Bear Resources Ltd. (GBR.V) has confirmed a significant new high-grade gold discovery in the Hinge zone at its Dixie project located in the Red Lake district of Ontario. Drill results are provided in the attached table and include:
- Drill hole DHZ-003 returned 16.35 metres of 26.91 grams per tonne gold, including separate subintervals of 5.05 metres of 51.39 g/t gold and one metre of 112.63 g/t gold.
- Drill hole DHZ-004, a follow-up drill hole completed 15 metres vertically below DHZ-003, intersected higher-grade gold mineralization, returning seven metres of 44.47 g/t gold, including two metres of 143.24 g/t gold, which includes one metre of 224.03 g/t gold.
- The newly reported intercepts from the Hinge zone are shallow, occurring above 110 metres vertical depth, and are open in all directions.
- As announced on May 23, 2018, Great Bear closed a financing and received funds from warrant exercises totalling $2.1-million. The company is fully financed to drill the remaining 5,000 metres of the current 10,000-metre drill program, which commenced in March, 2018.
ANNOUNCES $10 MILLION PRIVATE PLACEMENT, INVESTMENT FROM ROB MCEWEN AND MCEWEN MINING
Great Bear Resources Ltd. will be conducting a private placement financing of units, priced at $1.45 per unit, for gross proceeds of up to $10-million. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable into a common share of Great Bear at a price of $1.75 for a period of two years.
The company is pleased to announce that Rob McEwen has agreed to purchase $4.8-million of the financing and that McEwen Mining Inc. has agreed to purchase $1.2-million of the financing for a total of $6-million. On completion of the financing, Mr. McEwen and McEwen Mining will collectively own 18.8 per cent of Great Bear Resources on a partially diluted basis.
"We are very pleased to have Rob McEwen as a partner of Great Bear Resources. His record of success in the Red Lake district is quite simply unmatched," said Chris Taylor, president and chief executive officer of Great Bear. "We will now be funded to achieve significant milestones at our Dixie project, and anticipate positive opportunities for our shareholders as we advance these new high-grade gold discoveries."
"I'm excited to join the Great Bear team in the development of what I believe could be a significant new gold discovery in the Red Lake camp," added Rob McEwen. "Their technical work is excellent and I'm delighted to join forces with them to further unlock, once again, the riches of the world-class Red Lake gold camp."
The proceeds from the financing will be used for exploration and drilling in Red Lake, Ont., as well as for general working capital purposes.