Get the Latest Investment Ideas Delivered Straight to Your Inbox.

News Update

TICKERS: GBR; GTBDF

Explorer to Spin Out NSR Royalty from Red Lake Project
News Update

Source:

The board decided this move is in the company's best interests.

Great Bear Resources Ltd. (GBR:TSX.V; GTBDF:OTCQX) entered an agreement to spin out a 2% net smelter return (NSR) royalty on its Dixie project into a new, wholly-owned subsidiary, Great Bear Royalties Corp., it announced in a news release. The transaction is expected to close in April 2020.

For the spinout to move forward, Great Bear's shareholders need to approve it first. Specifically, of the votes cast by shareholders, 66⅔% must be in favor of the move.

Should that requirement be met and the spinout thus occur, the Canadian exploration company will transfer the NSR royalty, about $1 million in marketable securities that it owns, along with $0.5 million in cash, into the new corporation to constitute its initial assets.

Also, each shareholder, as of a particular date just before the transaction closes, will receive one share of Great Bear Royalties for each four common shares of Great Bear Resources held as of the record date.

The spinco initially will operate as a reporting issuer rather than being listed on a public stock exchange.

To create further value for shareholders through the spinco, Great Bear Resources intends to keep advancing Dixie, in Ontario's Red Lake District, the company stated.

[NLINSERT]

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Great Bear. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.




Learn More about Which Online Broker is Right for You?

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe