Bear Ridge Resources Ltd.
TSX : BER

Bear Ridge Resources Ltd.

December 19, 2006 17:50 ET

Bear Ridge Resources Ltd. Confirms Closing of Flow-Through Private Placement and Non-Core Property Dispositions for Total Proceeds of $58.2 Million

CALGARY, ALBERTA--(CCNMatthews - Dec. 19, 2006) - Bear Ridge Resources Ltd. (TSX:BER). Bear Ridge confirms the closing of its previously announced Private Placement Flow-Through Share Financing for net proceeds of $24.0 million and the sale of certain non-core properties for net proceeds of $34.2 million. Total net proceeds of $58.2 million received from the financing and non-core property sales will be used to reduce bank debt and fund the continued exploration and development of Bear Ridge's properties.

Flow-Through Share Private Placement

Bear Ridge is pleased to confirm the closing of its previously announced $24 million flow-through private placement and the issuance 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.

In accordance with the terms of the flow-through share subscription agreement, Bear Ridge is only required to renounce CEE and CDE qualifying expenditures to subscribers as expenditures are actually incurred over the next 24 month period. This effectively gives the Company until December 31, 2008 to meet the necessary exploration and development expenditure requirements and provides Bear Ridge with additional flexibility in managing the risk profile of its 2007 and 2008 capital programs.

Pursuant to the terms of the flow-through private placement, the Company also issued warrants to acquire an additional 3,000,000 CDE flow-through shares for future consideration of $13.5 million and 2,000,000 CEE flow through shares for future consideration of $11.0 million.

Bear Ridge is able to accelerate the exercise of the CDE and CEE warrants separately in the event that the common shares of the Company trade, on a weighted average basis, at prices of $4.40 and $5.00, respectively, for a period of twenty consecutive days. The maximum term of the warrants is to March 31, 2009.

Non-Core Property Dispositions

Bear Ridge completed its previously announced non-core property dispositions effective December 7, 2006 for proceeds of $34.2 million.

CORPORATE 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 at Tupper in Northeast BC and at Earring, Josephine and Eaglesham in the Peace River Arch region of Alberta.

Following completion of the Private Placement Flow-Through Financing, Bear Ridge has 55,130,306 issued and outstanding common shares. Insiders control 12% of the Company's issued and outstanding common shares and 16% on a fully diluted basis.

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
    (403) 537-8450 (FAX)
    or
    Bear Ridge Resources Ltd.
    Douglas C. Hibbs
    President
    (403) 537-8440
    (403) 537-8450 (FAX)
    or
    Bear Ridge Resources Ltd.
    Brian A. Baker
    Chief Financial Officer
    (403) 537-8440
    (403) 537-8450 (FAX)
    or
    Bear Ridge Resources Ltd.
    2200, 330 - 5 Avenue SW
    Calgary, Alberta T2P 0L4
    Website: www.bearridgeresources.com