VANCOUVER, BC, Jan. 6, 2021 /CNW/ - Bear Creek Mining Corporation ("Bear Creek" or the "Company") (TSXV: BCM) (BVL: BCM) announces that it has entered into an agreement with a syndicate of underwriters led by Stifel GMP (collectively, the "Underwriters"), pursuant to which the Underwriters will purchase, on a bought deal basis, 10,000,000 common shares (the "Common Shares") of the Company at a price of C$3.00 per Common Share (the "Offering Price") for aggregate gross proceeds to the Company of C$30,000,000 (the "Offering").
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,500,000 Common Shares at the Offering Price, exercisable in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the closing of the Offering to cover over-allotments, if any, and for market stabilization purposes. If this option is exercised in full, an additional C$4,500,000 in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be C$34,500,000.
The net proceeds from the Offering will be used for ongoing development activities at the Corani silver-lead-zinc project and for general corporate purposes.
The Common Shares will be offered by way of a prospectus supplement to be filed in all provinces and territories of Canada, except Québec. The Common Shares may also be offered in the United States on a private placement basis pursuant to applicable exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "1933 Act") and applicable state securities laws, and in other jurisdictions outside of Canada provided that no prospectus filing or comparable obligation arises.
The Offering is scheduled to close on or about January 15, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the conditional approval of the TSX Venture Exchange.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the 1933 Act and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of the 1933 Act, and applicable state securities laws.
On behalf of the Board of Directors,
President and CEO
This news release contains forward-looking statements regarding the timing and completion of the Offering, the use of proceeds of the Offering and continued development of the Corani Property. These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on the Company's beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, that general economic and business conditions will not change in a materially adverse manner, that the Offering will be completed on the anticipated timing and that receipt of regulatory approvals including the TSXV approval for the Offering will be obtained. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to general market conditions and the additional risks described in the Company's final short form base shelf prospectus dated October 29, 2020, the Company's latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR. The foregoing list of factors that may affect future results is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.