Grande Portage arranges $5M financing with Sprott

Executive Summary

• Grande Portage Resources Ltd. has arranged a non-brokered private placement of 20 million units for gross proceeds of C$5 million, with Eric Sprott subscribing for the entire offering.
• The capital raise positions the company with approximately $10 million in working capital to advance the New Amalga gold project in southeast Alaska, including exploration, development, and a preliminary economic assessment (PEA).
• The transaction includes specific warrant terms and regulatory covenants, with closing subject to TSX Venture Exchange approval.

Key Details

• Transaction Structure: Non-brokered private placement of 20,000,000 units.
• Price: 25 cents per unit.
• Gross Proceeds: C$5,000,000.
• Subscriber: Eric Sprott, through 2176423 Ontario Ltd.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each whole warrant is exercisable to purchase one common share at an exercise price of 35 cents 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-plus-one-day hold period.
• Closing Conditions: Subject to customary closing conditions, including final approval of the TSX Venture Exchange.
• Control Covenant: Mr. Sprott covenants not to exercise warrants if such exercise would result in him holding more than 19.99% of outstanding common shares until shareholder approval is obtained for him to become a control person.
• Project Resource Data (Effective July 17, 2024):
  • Indicated Gold: 1,438,500 ounces at 9.47 g/t Au (4,726,000 tonnes).
  • Inferred Gold: 515,700 ounces at 8.85 g/t Au (1,813,000 tonnes).
  • Indicated Silver: 891,600 ounces at 5.86 g/t Ag (4,726,000 tonnes).
  • Inferred Silver: 390,600 ounces at 7.33 g/t Ag (1,813,000 tonnes).
• Development Concept: Small-footprint underground mining operation with third-party off-site processing, eliminating the need for an on-site mill or tailings storage facility.

Notable Quotes

• "We are very pleased to see Mr. Sprott increase his equity position in Grande Portage, where he continues to be our largest shareholder. His ongoing support has enabled the company to advance our high-grade gold project through successive drilling campaigns, baseline pre-NEPA [National Environmental Policy Act] studies, and preparations for next quarter's PEA [preliminary economic assessment]. This latest capital infusion is significant, positioning the company to end the year with approximately $10-million in working capital -- our strongest financial position to date -- as we continue to advance the development of the New Amalga gold project in southeast Alaska." — Ian Klassen, President and CEO