McEwen Mining Invests C$6 Million in Great Bear

McEwen Mining (TSX:MUX,NYSE:MUX) and Chief Owner Rob McEwen have arranged a combined investment of C$6 million in Ontario-focused Great Bear Resources (TSXV:GBR).

As stated in a Great Bear press release on Friday (August 24), of the company’s private placement financing to raise C$10 million, McEwen has agreed to purchase C$4.8 million, while McEwen Mining will purchase C$1.2 million.

“I’m excited to join the Great Bear team in the development of what I believe could be a significant new gold discovery in the Red Lake camp. Their technical work is excellent and I’m delighted to join forces with them to further unlock, once again, the riches of the world-class Red Lake gold camp,” said McEwen.

Chris Taylor, president and CEO of Great Bear, added, “[w]e will now be funded to achieve significant milestones at our Dixie project, and anticipate positive opportunities for our shareholders as we advance these new high-grade gold discoveries.”

The private placement is priced at C$1.45 a unit and upon its completion both entities will collectively own 18.8 percent of Great Bear.

Great Bear plans to use funds from the financing on exploration and drilling in Red Lake, where the company owns the Dixie project.

Last Wednesday (August 22), the company intersected 16.35 meters of 26.91 g/t gold in a hole at the Hinge zone of Dixie. A follow-up hole returned 7 meters of 44.47 g/t gold.

Between the discovery and McEwen’s monetary interest in Great Bear, the company’s share price soared and landed at C$2 on Friday (August 24), up from C$0.72 on Tuesday (August 21).

“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 Taylor.

As of 3:02 p.m. EST on Monday (August 27), Great Bear was trading at C$1.95.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Great Bear Resources is a client of the Investing News Network. This article is not paid-for content.

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