Granada Gold arranges $2.5-million private placement

Executive Summary

• Granada Gold Mine Inc. has arranged a non-brokered private placement to raise gross proceeds of up to $2.5 million.
• The offering consists of up to 50 million units priced at $0.05 per unit, with net proceeds designated for resource updates, exploration, and general corporate purposes.
• The release includes an updated mineral resource estimate for the Granada gold project, detailing specific tonnage and grade figures for measured, indicated, and inferred categories.

Key Details

• Financing Structure: Non-brokered private placement raising up to $2.5 million in gross proceeds.
• Units Issued: Up to 50,000,000 units at a price of $0.05 per unit.
• Warrant Terms: Each unit includes one common share and one common share purchase warrant. Warrants allow the purchase of one common share at $0.075 per share for a period of five years from issuance.
• Use of Proceeds: Resource update, exploration, and general corporate purposes for the Granada gold property near Rouyn-Noranda, Que.
• Hold Period: All securities are subject to a four-month-and-one-day hold period under Canadian securities laws.
• Regulatory Conditions: Completion is subject to regulatory approvals, including TSX Venture Exchange approval.
• Mineral Resource Estimate (Effective June 23, 2022):
  • Measured and Indicated: 543,000 ounces of gold (8.22 million tonnes at an average grade of 2.05 g/t Au) at a base case cut-off grade of 0.55 g/t Au (pit-constrained).
  • Inferred: 456,000 ounces of gold (3.01 million tonnes at an average grade of 4.71 g/t Au) at a base case cut-off grade of 2.5 g/t Au (underground).
• Operational Status: The company is undergoing a large drill program with 20,000 metres out of 120,000 metres complete. Drills are currently paused to evaluate data and wait for improved market conditions.
• Historical Production: The former underground mine produced over 50,000 ounces of gold at 10 g/t in the 1930s. Historical bulk samples in the 1990s yielded 87,311 tonnes at 5.17 g/t Au and 22,095 tonnes at 3.46 g/t Au.