Group Eleven arranges $9-million private placement

Executive Summary

• Group Eleven Resources Corp. has entered into an agreement for a bought deal private placement to raise aggregate gross proceeds of C$9 million.
• The offering consists of 10 million common shares priced at C$0.90 per share, with an over-allotment option for up to 1.5 million additional shares.
• Net proceeds will be used to finance exploration drilling at the Ballywire and Stonepark projects, as well as for working capital and general corporate purposes.

Key Details

• Transaction Structure: Bought deal private placement led by ATB Cormark Capital Markets.
• Gross Proceeds: C$9 million from the initial tranche; up to C$1.35 million additional proceeds available via over-allotment option.
• Share Price: C$0.90 per common share.
• Shares Issued: 10 million common shares (initial); up to 1.5 million additional shares via over-allotment.
• Underwriting Fees: 6.0% of aggregate gross proceeds, reduced to 2.0% for certain purchasers identified on the company's president list.
• Use of Proceeds: Exploration drilling at Ballywire and Stonepark, working capital, and general corporate purposes.
• Closing Date: Expected on or about March 11, 2026, subject to customary conditions and regulatory approvals (must close within 45 days of the release).
• Pre-existing Shareholder Participation: Glencore Canada Corp. is exercising its participation right to maintain its 13.6% ownership interest through a concurrent non-brokered offering on substantially the same terms, with no commission paid to underwriters for this portion.
• Regulatory Status: Offered pursuant to National Instrument 45-106 (Prospectus Exemptions) and Coordinated Blanket Order 45-935. No hold period in Canada for Canadian subscribers.
• Project Context (Ballywire): Significant mineral discovery in the Republic Ireland with high-grade intercepts including:
  • 52.3 m of 10.3% Zn+Pb, 330 g/t Ag, and 0.40% Cu (including 8.4 m of 18.2% Zn+Pb, 1,776 g/t Ag, 2.21% Cu, and 0.18% Sb).
  • 39.7 m of 9.5% Zn+Pb, 131 g/t Ag, and 0.27% Cu.
  • 29.6 m of 10.6% Zn+Pb, 78 g/t Ag, and 0.15% Cu.
• Project Context (Stonepark): 77.64%-owned zinc-lead deposit located 20 km from Ballywire, adjacent to Glencore's Pallas Green deposit.
• Key Shareholders: Michael Gentile (13.8%) and Glencore Canada Corp. (13.6%).

Notable Quotes

• None explicitly quoted in the text, though the release notes the technical approval by Prof. Garth Earls, EurGeol, PGeo, FSEG, independent qualified person.