 |
  | | May 28, 2010
Bear Lake Gold Ltd. announces private placement of units and flow-through shares to raise up to $4,150,000
|
| | Longueuil, Québec: May 28, 2010. Bear Lake Gold Ltd. (the "Company" or "Bear Lake") (TSX.V: BLG) announces a planned private placement of its securities comprised of up to 15,650,000 of "flow-through" common shares of the Company ("FT Shares") at a price of $0.20 per FT Share and 5,666,667 of units of its securities ("Units") at a price of $0.18 per Unit, to raise a total of $4,150,000 on a non-brokered basis (the "Financing"). Each Unit will consist of one common share of Bear Lake (a "Share") and one common share purchase warrant (a "Warrant"), with each Warrant exercisable to acquire one Share at $0.30 per Share for a period of 24 months from the closing date of the Financing. The Warrants will be subject to a right of accelerated expiry at the Company's option where the closing price of the Shares on the TSX Venture ("TSXV") has exceeded $0.50 for twenty consecutive trading days at any time after four months and one day from closing of the Financing. Approximately 2.4% of the Financing is being subscribed for by insiders of Bear Lake.
The Company intends to use the gross proceeds of the sale of FT Shares mainly for exploration on its Larder Lake project. The Company intends to use the net proceeds from the sale of Units for general corporate purposes.
Closing of the Financing is subject to certain conditions, including without limitation the receipt of all necessary corporate and regulatory approvals, including that of the TSXV. Closing of the Financing is expected to take place on or about June 11, 2010.
The Company may pay finder's fees to qualified finders in connection with the Financing, in accordance with applicable securities laws and the policies of the TSXV.
All securities issued in conjunction with the Financing will be subject to a four-month hold period under applicable securities laws.
Forward-Looking Information
This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the Company's plans to complete the private placement on the terms announced. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to capital markets and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.
About Bear Lake Gold
Bear Lake Gold is engaged in the exploration of gold and precious mineral properties in North America. Additional information about the Company is available on the Company's website, www.bearlakegold.com and on SEDAR at www.sedar.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.
For further information please contact:
Francois Viens
President and CEO
Bear Lake Gold Ltd.
Tel: 450-677-1009
Fax: 450-677-2601
fviens@bearlakegold.com |
| |
| | You can view the Next News Releases item: Tue Jun 22, 2010, Bear Lake Gold Ltd. announces Closing of Tranche 1 of Private Placement for $2,552,002 and Drilling Program to Start
You can view the Previous News Releases item: Tue Apr 13, 2010, Bear Lake Gold -- Update on Settlement of Class Action Lawsuit
You can return to the main News Releases page, or press the Back button on your browser.
|
|
|
