TSX-V: GBR
VANCOUVER, Oct. 24, 2019 /CNW/ - Great Bear Resources Ltd.
(the "Company" or "Great Bear", TSX-V: GBR) today reported its
intention to create, and subsequently spin-out, a two percent Net
Smelter Royalty ("NSR") on any potential future mineral production
at the Dixie property. The NSR will initially be placed in a
wholly-owned subsidiary ("SpinCo"). The intention is
for the shares of SpinCo to be distributed to the shareholders of
Great Bear at a time to be determined by the Board of
Directors. It is expected that the distribution will be
completed pursuant to a plan of arrangement (the
"Arrangement"), under the Business Corporations
Act (British
Columbia).
The Arrangement will be subject to TSX Venture Exchange,
regulatory and court approval, as well as at management's continued
discretion. Pursuant to the arrangement, common shares of
SpinCo will be distributed to shareholders of Great Bear on a pro
rata basis. Subsequent to the SpinCo share distribution, the
Board of Directors of SpinCo may at some point decide to pursue
listing of its shares on a stock exchange, if and when it
determines it is in the best interests of its shareholders.
There will be no change in shareholders' holdings in Great Bear as
a result of the Arrangement.
Additional details regarding the Arrangement, including the
proposed record date, will be provided as they become
available. There is no certainty the Company will proceed
with the Arrangement.
Chris Taylor, President and CEO
of Great Bear said, "Discoveries like those occurring at Dixie with
the combination of multiple high-grade gold zones, shallow gold
mineralization, and proximity to infrastructure within a major
mining district, are globally very rare. Our Board of
Directors has reviewed the discovery, and transaction history of
similar gold discoveries, and believes that a 2% NSR has excellent
potential to benefit our shareholders. We also believe it is
unlikely to impede potential positive developments that may be
possible for the project and our Company, as the majority of
comparable gold projects that have been successfully developed have
similar or larger royalties. We therefore believe we have a
unique opportunity to create additional potential value for our
shareholders through the creation of a royalty-focused company
built on the future potential of this emerging, district-scale
property."
About Great Bear
Great Bear Resources Ltd. (TSX-V: GBR) is a
well-financed company based in Vancouver,
Canada, managed by a team with a track record of success in
the mineral exploration sector. Great Bear holds a 100% interest,
royalty free, in its flagship Dixie property, which is road
accessible year-round via Highway 105, a 15-minute drive from
downtown Red Lake, Ontario.
The Red Lake mining district is
one of the premier mining districts in Canada, benefitting from major active mining
operations including the Red Lake Gold Mine of Newmont Goldcorp
Corp., plus modern infrastructure and a skilled workforce.
Production from the Red Lake
district does not necessarily reflect the mineralization that may,
or may not be hosted on the Company's Dixie property.
The Dixie property hosts different styles of gold
mineralization. High-grade gold-bearing quartz veins and
silica-sulphide replacement zones hosted by mafic volcanic rocks,
and localized near regional-scale D2 folds, occur at the Dixie Limb
and Hinge Zones. These mineralization styles are also typical
of the significant mined deposits of the Red Lake district.
The LP Fault is a large trans-crustal deformation zone that is
interpreted to traverse the Dixie property for approximately 18.5
kilometres of strike length and has been drilled along
approximately 3.5 kilometres of strike length to-date. It
hosts high-grade gold mineralization that is controlled by
structural and geological contacts, and low to moderate grade
disseminated gold that surrounds and flanks the high-grade
intervals. The dominant gold-hosting stratigraphy consists of
felsic sediments and volcanic units.
In addition, Great Bear is also earning a 100% royalty-free
interest in the Pakwash, Dedee and Sobel properties, which cover
regionally significant gold-controlling structures and prospective
geology. All of Great Bear's Red
Lake projects are accessible year-round through existing
roads.
ON BEHALF OF THE BOARD
"Chris
Taylor"
Chris Taylor, President and
CEO
Inquiries:
Tel: 604-646-8354
Fax: 604-646-4526
info@greatbearresources.ca
www.greatbearresources.ca
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This new release may contain forward-looking statements.
These statements are based on current expectations and assumptions
that are subject to risks and uncertainties, including failure to
receive Court and regulatory approvals for the Arrangement or other
risks that would result in the Arrangement not achieving the
anticipated benefits disclosed herein, including those relating to
the intention to spin out the NSR and create SpinCo pursuant to the
Arrangement, regulatory and Court approvals for the Arrangement,
the potential benefits to shareholders, the development of the
Dixie project and other matters relating to the Arrangement, the
Dixie project, and the NSR. Results could differ materially
because of factors discussed in the management discussion and
analysis section of our interim and most recent annual financial
statement or other reports and filings with the TSX Venture
Exchange and applicable Canadian securities regulations. We do not
assume any obligation to update any forward-looking
statements.
We seek safe harbor
View original content to download
multimedia:http://www.prnewswire.com/news-releases/great-bear-to-spin-out-net-smelter-royalty-to-shareholders-300944703.html
SOURCE Great Bear Resources Ltd.