Great Bear Resources (GBR.V) is now in the final stages of spinning out a royalty company and the court dates for the plan of arrangement have now been set.
But first things first: Great Bear has once again released excellent drill results from its ongoing drill program on the LP Faul (where almost 1/3rd of the planned holes have been completed by now). Holes 101 and 102 are quite interesting as they both indicate the existence of narrower (but still mineable) intervals of 3-3.5 meters within much thicker mineralized intervals. Hole 101 encountered 3 meters of 42.7 g/t gold within a 52.15 meter interval grading 4.24 g/t gold (indicating a remaining average grade of 1.89 g/t gold) while hole 102 confirmed the presence of 3.5 meters of 23.17 g/t gold within a 48 meter interval of 3.10 g/t (indicating a remaining average grade of 1.52 g/t).
You can find all reported drill results in Great Bear’s press release (click HERE) but the main takeaway is that the plan to punch 300 holes in a 5000 X 500 meter zone is paying off as the assay results that have been published so far seem to confirm the continuity of the mineralized trend. We found this grid-based exploration pattern very interesting in February and we interpreted it as Great Bear’s first attempt to map a ‘coherent’ structure on a drill spacing that should be tight enough for a maiden inferred resource estimate on the 2.5 square kilometer area.
The drill bit continues to confirm the expectations, but the next few weeks all eyes will be on the completion of the spinout of the royalty company (which will remain a private company for the time being).
As the spin-out is structured as a plan of arrangement, there will be a mandatory split into GBR shares and Great Bear Royalties shares even if you didn’t vote your shares and even if you voted against but ‘yay has it’. We noticed one important section in the Management Information Circular about physical share certificates. If for some reason you own a physical share cert of Great Bear you are obviously still entitled to receiving the shares of the Royalty company but you must deposit your physical certificate within six years.
We would assume most investors deposit certificates on their brokerage account (and the plan of arrangement will automatically convert those shares into New-GBR and RoyaltyCo shares), but keep in mind that if you do own a certificate you need to deposit it within six years otherwise you won’t just miss out on receiving the Royalty-shares, but your original Great Bear shares will also be worthless if you don’t deposit them in time.
In case you’d like to vote (either in favor of or against the deal – we will vote in favor), keep in mind the cutoff deadline to vote is tomorrow Tuesday April 21st at 1PM PST (4PM EST, 9PM London time, 10 PM Paris/Brussels/Frankfurt time). After obtaining shareholders approval, the Supreme Court of British Columbia will hear the case on Monday, April 27th at 9:45 AM and the plan of arrangement is expected to close the subsequent day (April 28th) where after you should see the shares of Great Bear Royalties appear in your account.
Disclosure: The author has a long position in Great Bear Resources. Great Bear is a sponsor of the website.
