Great Bear Resources (GBR.V) has always done the smart thing when financing windows opened: the company always took the money whenever it was available and that has helped GBR to continue its aggressive drill program on the Dixie gold project in Ontario’s Red Lake gold district.
In the third quarter, Great Bear spent in excess of C$8M on its exploration activities which brings the total investment for the year to date at in excess of C$25M. As the company is capitalizing the drill costs rather than expensing them, it’s easy to keep track of the cumulative expenditures on the Dixie gold project as the book value has increased to C$70.5M and the bulk of this book value consists of exploration expenditures.
Meanwhile, the company remains in an excellent financial shape thanks to Great Bear’s excellent ability to raise money. In February, the company closed a C$70M capital raise consisting of 3.225 million flow-through shares priced at C$18.60 while an additional 784,000 common shares were issued at C$12.75. A good move as despite the aggressive exploration efforts, Great Bear’s balance sheet remains in an excellent shape. At the end of September, the company had just over C$77M in cash which should be sufficient for two additional years of exploring based on the current spending rate.
Disclosure: The author has a long position in Great Bear Resources. Great Bear is a sponsor of the website. Please read our disclaimer.
