Grande Portage Announces Non-Brokered Private Placement Pursuant to the Listed Issuer Financing Exemption
Rhea-AI Summary
Grande Portage Resources (TSXV:GPG)(OTCQB:GPTRF) announces a non-brokered private placement of up to 10,000,000 units at C$0.30 per unit to raise up to C$3,000,000. Each unit includes one common share and one warrant exercisable at C$0.45 for 24 months. Red Cloud Securities will act as finder, receiving 7% cash compensation and 7% finder warrants exercisable at C$0.30 for 24 months. The offering, closing in multiple tranches between November 12-30, 2024, will fund exploration of the New Amalga Mine project in Alaska and working capital. The units will not be subject to statutory hold period in Canada under LIFE Exemption.
Positive
- Raising up to C$3,000,000 in new capital
- No statutory hold period for units under LIFE Exemption
- Proceeds will advance exploration of New Amalga Mine project
Negative
- 7% finder's fee and warrants represent additional costs
- Potential dilution for existing shareholders
- Exercise of warrants at C$0.45 would cause further dilution
News Market Reaction – GPTRF
In the trading session that priced this news, GPTRF declined 11.41%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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VANCOUVER, BC / ACCESSWIRE / October 30, 2024 / Grande Portage Resources Ltd. (TSXV:GPG)(OTCQB:GPTRF)(FSE:GPB) ("Grande Portage" or the "Company") is pleased to announce a non-brokered private placement of up to 10,000,000 units (each, a "Unit") at a price of C
Each Unit will consist of one common share in the capital of the Company (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one additional Common Share at an exercise price of C
The Units issued in the Offering will not be subject to any statutory hold period in Canada, subject to limitations prescribed by the LIFE Exemption.
Insiders and certain other existing shareholders of Grande Portage may also subscribe for Units under the Offering.
Red Cloud Securities Inc. (the "Finder") will act as a finder for the Company in respect of the Offering on a best efforts basis. As compensation for its services, the Finder will receive cash compensation equal to
Grande Portage intends to use the net proceeds of the Offering for furthering the exploration and development of its New Amalga Mine project in Alaska, including additional drilling, as well as general working capital purposes.
The Offering may close in multiple tranches, with the first tranche closing expected to occur on November 12, 2024, and the final closing to occur no later than November 30, 2024. The Offering is subject to certain conditions including, but not limited to, receipt of all necessary approvals including the acceptance of the TSX Venture Exchange.
The securities issued pursuant to the Offering have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.
About Grande Portage:
Grande Portage is a publicly traded mineral exploration company focused on the New Amalga Mine project (formerly the Herbert Gold Project) situated approximately 25 km north of Juneau, Alaska. The Company holds a
The Company's updated NI 43-101 Mineral Resource estimate reported at a base case mineral resources cut-off grade of 2.5 grams per tonne gold (g/t Au) and consists of: an Indicated Resource of 1,438,500 ounces of gold at an average grade of 9.47 g/t Au (4,726,000 tonnes); and an Inferred Resource of 515,700 ounces of gold at an average grade of 8.85 g/t Au (1,813,000 tonnes), as well as an Indicated Resource of 891,600 ounces of silver at an average grade of 5.86 g/t Ag (4,726,000 tonnes); and an Inferred Resource of 390,600 ounces of silver at an average grade of 7.33 g/t silver (1,813,000 tonnes).
ON BEHALF OF THE BOARD
"Ian Klassen"
Ian M. Klassen
President & Chief Executive Officer
Tel: (604) 899-0106
Email: Ian@grandeportage.com
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties as described in the Company's filings with Canadian securities regulators. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED UNDER THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
SOURCE: Grande Portage Resources Limited
View the original press release on accesswire.com