Oct 23, 2008 10:40 ET
Bear Lake Gold Announces Closing of Brokered Private Placement and Debt Settlement
LONGUEUIL, QUEBEC--(Marketwire - Oct. 23, 2008) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Bear Lake Gold Ltd. (TSX VENTURE:BLG) ("Bear Lake Gold" or the "Company") is pleased to announce that is has completed its previously announced brokered private placement for total gross proceeds of $4,905,980.10. A total of 13,350,000 flow through common shares (the "FT Shares") at $0.30 per FT Shares and 3,003,267 units (the "Units") at $0.30 per Unit (including 503,267 Units sold under the Over-allotment Option granted to the Agents) have been issued. Each Unit issued consists of one common share of Bear Lake Gold and one non transferrable common share purchase warrant, with each warrant exercisable to acquire one common share at $0.40 per share until October 23, 2010.
Dundee Securities Corporation ("Dundee Securities") acted as lead agent and PI Financial Corporation ("PI Financial") and Primary Capital Inc. ("Primary") (Dundee Securities, PI Financial and Primary collectively referred to as the "Agents") acted as investment dealer syndicate. At closing, the Agents elected to receive their 5% commission in a combination of $60,400 in cash and 616,330 Units. The Agents also received a total of 817,663 non-transferable Agents broker warrants to purchase up to 817,663 common shares of the Company at a price of $0.30 per share until October 23, 2010.
Gross proceeds from sale of the FT Shares will be used to advance the exploration of the Company's principal property, the Larder Lake property in north-eastern Ontario, and the net proceeds from the sale of the Units will be used for general working capital purposes.
"We are pleased to have completed this important financing for Bear Lake Gold despite extremely unfavourable market conditions", said Francois Viens, President and CEO of Bear Lake Gold. "This is another proof that investors recognize the outstanding potential of the Larder Lake project and a great vote of confidence for the management of the Company."
All securities issued in connection with the offering and the underlying securities are subject to a hold period that expires February 24, 2009 and may not be traded except as permitted under applicable securities legislation and the policies of the TSX Venture Exchange ("TSX-V").
Debt Settlement
The Company also announces that it has entered into an agreement with each of Primary and Dundee Securities to settle amounts owed to them for fees charged as financial advisors of the Company and Maximus Ventures Ltd. (now a wholly owned subsidiary of the Company) in connection with their recently completed business combination. The agreements provide that the Company will, subject to receipt of the approval of the TSX-V, issue to Dundee Securities and Primary, respectively, 750,000 and 666,666 units of the Company at a price of $0.30 per unit, with each such unit to be comprised of one common share of the Company and one non-transferable share purchase warrant entitling the holder to acquire one common share at $0.40 per share until October 23, 2010, as complete settlement of their fees. -----------
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