Great Bear Resources (TSX-V: GBR) spin-off Great Bear Royalties Corp. (TSX-V: GBRR) began trading on the TSX-V on Monday, rising $3.27 in its first day on the exchange.
The company holds a 2% net smelter royalty on Great Bear Resources' tremendously successful Dixie project in Red Lake, Ontario. Back in Aug. 2018, Great Bear intersected 16.35 metres of 26.91 grams of gold per tonne (g/t Au), more than doubling shares of that company in a single day and kicking off a precipitous rise that has propelled GBR to $15.40 per share at the time of writing. The project is now well-known as one of Canada's biggest recent discoveries, if not the biggest, with a fully-funded, $45 million, 175,000-metre drill program currently underway.
Great Bear announced the proposed spin-off at the beginning of 2021, with plans to transfer the royalty, $1 million in marketable securities, and $0.5 million in cash to its new subsidiary. "Great Bear will continue to focus on advancing the 100% owned Dixie Project, while Great Bear Royalties will allow shareholders to capture additional long-term value through the royalty interest" the company said in that release.
Upon Great Bear Royalties' entry onto the TSX-V, CEO John Robbins had this to say: "April 5th, 2021 will mark a milestone for Great Bear Royalties and its shareholders. The 2% NSR on Great Bear Resources' Dixie project, is a clear "tier one" royalty asset located in a "tier one" jurisdiction. Great Bear Royalties has approximately C$5 million in working capital and is well position [sic] to build shareholder value."
Investors seem to agree, with 1.2 million shares trading on Monday morning and over 2000% in gains.