Grande Portage Resources closes $5-million financing

Executive Summary

• Grande Portage Resources Ltd. has closed a non-brokered private placement raising C$5 million in gross proceeds.
• The entire offering was subscribed by Eric Sprott through 2176423 Ontario Ltd., increasing his stake to approximately 19.7% on a non-diluted basis.
• Proceeds are designated for the exploration and development of the New Amalga gold deposit and general working capital.

Key Details

• Transaction Structure: Non-brokered private placement of 20 million units.
• Price: 25 cents per unit.
• Gross Proceeds: $5 million.
• Subscriber: Eric Sprott (via 2176423 Ontario Ltd.) as the sole subscriber.
• Warrant Terms: Each unit includes one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable to purchase one common share at $0.35 per share for a period of two years from the date of grant.
• Use of Proceeds: Exploration and development of the New Amalga gold deposit and general working capital.
• Hold Period: Securities are subject to a four-month hold period expiring on April 10, 2026.
• Regulatory Conditions: Closing is subject to customary conditions, including final approval of the TSX Venture Exchange.
• Ownership Impact:
  • Prior to offering: Mr. Sprott held 15 million common shares (~9.5% of outstanding).
  • Post-offering: Mr. Sprott holds 35 million common shares and 10 million warrants.
  • Dilution: Represents ~19.7% of outstanding shares on a non-diluted basis and ~24% on a partially diluted basis (assuming full warrant exercise).
• Covenants: Mr. Sprott covenants not to exercise warrants if it results in holding >19.99% of outstanding common shares until shareholder approval is obtained for him to become a control person under TSX-V policies.
• Mineral Resource Estimate (New Amalga):
  • Indicated Gold: 1,438,500 oz at 9.47 g/t Au (4,726,000 tonnes).
  • Inferred Gold: 515,700 oz at 8.85 g/t Au (1,813,000 tonnes).
  • Indicated Silver: 891,600 oz at 5.86 g/t Ag (4,726,000 tonnes).
  • Inferred Silver: 390,600 oz at 7.33 g/t Ag (1,813,000 tonnes).
  • Cut-off Grade: 2.5 g/t Au.
  • Effective Date: July 17, 2024.