Mr. Ian Klassen reports
GRANDE PORTAGE ANNOUNCES CLOSING OF FULLY SUBSCRIBED C$3.15 MILLION PRIVATE PLACEMENT LED BY ERIC SPROTT
Grande Portage Resources Ltd. has closed its previously announced private placement offering of units of the company pursuant to which the company issued 10.5 million units at a price of 30 cents per unit, for aggregate gross proceeds of $3.15-million.
Each unit is composed of one common share of the company and one-half of one common share purchase warrant. Each warrant is exercisable to acquire one common share at a price of 45 cents per warrant share expiring on Jan. 8, 2022.
The company intends to use the net proceeds from the offering to advance drilling and exploration at the company's Herbert gold project and also for general corporate purposes.
Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 10 million of the units pursuant to the offering. As a result of the offering, Mr. Sprott beneficially owns and controls 10 million common shares and five million warrants of the company, representing approximately 12.8 per cent of the issued and outstanding common shares on a non-diluted basis and 18.1 per cent on a partially diluted basis, assuming the exercise of such warrants. Prior to the closing, Mr. Sprott did not beneficially own any shares of the company.
The units were acquired by Mr. Sprott, through 2176423, for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the company, including on the open market or through private acquisitions, or sell securities of the company, including on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors.
A copy of 2176423 Ontario's early warning report will appear on the company's profile on SEDAR and may also be obtained by calling 416-945-3294 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1).
In connection with the unit offering, the company will pay $45,450 in cash and issue 151,500 units for finders' fees, representing 3 per cent of the transaction.
About Grande Portage Resources Ltd.
Grande Portage is a publicly traded mineral exploration company focused on the Herbert gold discovery situated approximately 25 kilometres north of Juneau, Alaska. The company holds a 100-per-cent leasehold interest in the Herbert property. The Herbert gold property system is open to length and depth, and is host to at least six main composite vein-fault structures that contain ribbon structure quartz-sulphide veins. The project lies prominently within the 160-kilometre-long Juneau gold belt, which has produced nearly seven million ounces of gold.
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