By Susanna Moon
Chicago, May 27 - Bear Lake Gold Ltd. said that it is increasing the size of its bought deal private placement of units to C$2.5 million, up from the C$2.01 million announced on May 26.
The company now will sell 7,575,758 units at C$0.33. It had planned to sell up to 6.1 million units.
Each unit will consist of one common share and one half-share purchase warrant, with each warrant exercisable at C$0.40 for two years. The company may accelerate the expiry of the warrants if the share closing price exceeds C$0.50 for 20 consecutive trading days at any time after four months and one day from closing.
Primary Capital Inc. and Dundee Securities Corp. are the agents.
The offer is expected to close on June 4.
"We are very pleased with the strong demand investors have shown for our offering and felt that increasing the size of the offering was a prudent measure to increase the company's financial flexibility," Francois Viens, the company's president and chief executive officer, said in a press release.
"The additional $500,000 of gross proceeds further enhances our liquidity position and provides Bear Lake with additional working capital for its ongoing exploration activities," Viens added.
Proceeds will be used to finance the company's work program at the Hope Bay project in Nunavut, to continue drilling and complete a 43-101 resource estimate at Larder Lake and for general working capital.
Based in Longueuil, Quebec, Bear Lake is a gold and precious minerals exploration company.
| Issuer: | Bear Lake Gold Ltd.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$2.5 million, up from C$2,013,000
|
| Units: | 7,575,758, up from 6.1 million
|
| Price: | C$0.33
|
| Warrants: | One half share per unit
|
| Warrant strike price: | C$0.40
|
| Warrant expiration: | Two years
|
| Agents: | Primary Capital Inc. and Dundee Securities Corp.
|
| Pricing date: | May 26
|
| Upsized: | May 27
|
| Settlement date: | June 4
|
| Stock symbol: | TSX Venture: BLG
|
| Stock price: | C$0.35 at close May 25
|
| Market capitalization: | C$33.10 million
|
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