Bear Ridge Resources Ltd.
TSX : BER

Bear Ridge Resources Ltd.

December 07, 2006 03:00 ET

Bear Ridge Resources Ltd. Announces $24 Million Private Placement Flow-Through Share Financing

CALGARY, ALBERTA--(CCNMatthews - Dec. 7, 2006) - Bear Ridge Resources Ltd. (TSX:BER) ("Bear Ridge" or "the Company") is pleased to announce that it has entered into a private placement financing of 5,000,000 flow-through common shares for net proceeds of $24,000,000 consisting of 2,000,000 CEE flow through shares at a price of $5.40 per share and 3,000,000 CDE flow-through shares at a price of $4.40 per share. The Company has agreed to issue warrants to the Purchasers to acquire an additional 2,000,000 CEE flow-through common shares at a price of $5.50 per share and 3,000,000 CDE flow-through common shares at a price of $4.50 per share. The warrants may be redeemed by the purchasers at any time up to and including March 31, 2009. In the event that Bear Ridge common shares trade, on a weighted average basis, for twenty consecutive days at or above $5.00 in the case of the CEE warrants and $4.40 in the case of the CDE warrants then Bear Ridge has the right to require the Purchasers to exercise the CEE and CDE warrants, respectively. Assuming exercise of all warrants, Bear Ridge will realize additional net proceeds of $24,500,000.

The flow through common shares will be issued to a group of private investors. The net proceeds of $24,000,000 received from the sale of the flow-through common shares will be used to fund the continued exploration and development of Bear Ridge's properties. Closing is expected to take place on or about December 15, 2006 and is subject to normal regulatory approvals.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

ADDITIONAL INFORMATION

Bear Ridge executes a drillbit growth strategy focused on large scale 3D seismic projects in the Peace River Arch and Northeast BC. The Company has assembled over 1,300 square kilometers of 3D seismic in these regions and has built solid core operating positions with considerable drilling upside at Tupper in Northeast BC and at Earring, Josephine and Eaglesham in the Peace River Arch region of Alberta.

Additional information regarding Bear Ridge and its business and operations, including the annual information form for Bear Ridge Resources Ltd. for the period ended December 31, 2005, is available on Bear Ridge's website www.bearridgeresources.com and Bear Ridge's SEDAR profile at www.sedar.com.

Forward Looking Statements - Certain information regarding Bear Ridge Resources Ltd. set forth in this document, including management's assessment of Bear Ridge Resources Ltd.'s future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Bear Ridge Resources Ltd.'s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, current fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Bear Ridge Resources Ltd.'s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Bear Ridge Resources Ltd. will derive there from.

Contact Information

  • Bear Ridge Resources Ltd.
    Russell J. Tripp
    Chief Executive Officer
    (403) 537-8440
    or
    Bear Ridge Resources Ltd.
    Douglas C. Hibbs
    President
    (403) 537-8440
    or
    Bear Ridge Resources Ltd.
    Brian A. Baker
    Chief Financial Officer
    (403) 537-8440
    (403) 537-8450 (FAX)
    Website: www.bearridgeresources.com