BEAR LAKE GOLD ANNOUNCES CLOSING OF BROKERED
PRIVATE PLACEMENT AND DEBT SETTLEMENT
Not for distribution to United States newswire services or for dissemination in the United States.
October 23, 2008. Longueuil, Quebec – Bear Lake Gold Ltd. (TSX-V: BLG) ("Bear Lake Gold" or the "Company") is pleased to announce that is has completed its previously announced brokered private placement for total gross proceeds of $4,905,980.10. A total of 13,350,000 flow through common shares (the “FT Shares”) at $0.30 per FT Shares and 3,003,267 units (the "Units") at $0.30 per Unit (including 503,267 Units sold under the Over-allotment Option granted to the Agents) have been issued. Each Unit issued consists of one common share of Bear Lake Gold and one non transferrable common share purchase warrant, with each warrant exercisable to acquire one common share at $0.40 per share until October 23, 2010.
Dundee Securities Corporation (“Dundee Securities”) acted as lead agent and PI Financial Corporation (“PI Financial”) and Primary Capital Inc. ("Primary") (Dundee Securities, PI Financial and Primary collectively referred to as the “Agents”) acted as investment dealer syndicate. At closing, the Agents elected to receive their 5% commission in a combination of $60,400 in cash and 616,330 Units. The Agents also received a total of 817,663 non-transferable Agents broker warrants to purchase up to 817,663 common shares of the Company at a price of $0.30 per share until October 23, 2010.
Gross proceeds from sale of the FT Shares will be used to advance the exploration of the Company’s principal property, the Larder Lake property in north-eastern Ontario, and the net proceeds from the sale of the Units will be used for general working capital purposes.
“We are pleased to have completed this important financing for Bear Lake Gold despite extremely unfavourable market conditions”, said Francois Viens, President and CEO of Bear Lake Gold. “This is another proof that investors recognize the outstanding potential of the Larder Lake project and a great vote of confidence for the management of the Company. “
All securities issued in connection with the offering and the underlying securities are subject to a hold period that expires February 24, 2009 and may not be traded except as permitted under applicable securities legislation and the policies of the TSX Venture Exchange (“TSX-V”).
Debt Settlement
The Company also announces that it has entered into an agreement with each of Primary and Dundee Securities to settle amounts owed to them for fees charged as financial advisors of the Company and Maximus Ventures Ltd. (now a wholly owned subsidiary of the Company) in connection with their recently completed business combination. The agreements provide that the Company will, subject to receipt of the approval of the TSX-V, issue to Dundee Securities and Primary, respectively, 750,000 and 666,666 units of the Company at a price of $0.30 per unit, with each such unit to be comprised of one common share of the Company and one non-transferable share purchase warrant entitling the holder to acquire one common share at $0.40 per share until October 23, 2010, as complete settlement of their fees.
About Bear Lake Gold
Bear Lake Gold is engaged in the exploration of gold and precious mineral properties in North America. On September 16, 2008, the Company completed a business combination with Maximus Ventures Ltd. (“Maximus”), its partner in the Larder Lake property. Maximus is now a wholly-owned subsidiary of Bear Lake Gold, and in connection with the transaction, the Company changed its name from NFX Gold Inc. to Bear Lake Gold. Additional information about the Company is available on the Company’s website, www.bearlakegold.com and on SEDAR at www.sedar.ca.
Cautionary Statement regarding "Forward-Looking" Information and Statements
This news release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Forward-looking statements can often be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Specifically, this news release includes forward-looking statements regarding the Company's plans, projections, estimates and expectations. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the uncertainties involved in the private placement financing and other risks involved in the gold exploration and development industry as well as those risk factors listed in the Company's most recent financial statements and management discussion and analysis filed on SEDAR. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
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