Mining News Pro - Precious metals miner McEwen Mining and its chief owner Rob McEwen will invest a combined C$6-million in Ontario explorer Great Bear Resources, which last week announced a high-grade gold discovery in the Red Lake district.
According to Mining News Pro - Precious metals miner McEwen Mining and its chief owner Rob McEwen
will invest a combined C$6-million in Ontario explorer Great Bear
Resources, which last week announced a high-grade gold discovery in the
Red Lake district.
Rob McEwen has agreed to purchase $4.8-million and McEwen Mining
$1.2-million of the TSX-V-listed exploration company’s private placement
financing to raise C$10-million.
The private placement, announced on Friday, is priced at C$1.45 a unit.
On completion, the two entities will collectively own 18.8% of Great
Bear, which Rob McEwen believes could be onto a “significant new gold
discovery” in one of Canada’s premier mining camps.
The proceeds from the financing will be used for exploration and
drilling in Red Lake, where Great Bear owns the Dixie project. Last
week, the explorer announced that it had intersected 16.35 m of 26.91
g/t gold in a hole in the Hinge zone of Dixie and that a follow-up hole
had returned 7 m of 44.47 g/t gold.
Tuesday’s news of the high-grade discovery resulted in a spike in the
company’s share price the following day and Friday’s news of Rob McEwen
buying into the explorer further lifted its stock. The company hit C$2 a
share on Friday, up from C$0.72 a share on Tuesday.
“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 Great Bear president and CEO Chris Taylor.
He added that Great Bear was now funded to further advance the Dixie
project, in which it is earning a 100% royalty-free interest. Remaining
payments total $110 000 over three years.