Grande Portage Resources Announces $8,000,000 Brokered Financing
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2006) - Grande Portage Resources Ltd. (TSX VENTURE:GPG) ("Grande Portage" or "the Company") is pleased to announce a brokered private placement, led by Pacific International Securities Inc. and including Dundee Securities Corporation as agents (the "Agents"), for up to 8,000,000 non flow though units ("Units") of the Company at $0.70 per Unit and up to 3,000,000 flow-through units ("FT Units") of the Company at $0.80 per FT Unit, for total gross proceeds of up to (Cdn) $8,000,000 (the "Offering"). Each Unit shall consist of one (1) common share ("Common Share") of the Company and one half of one common share purchase warrant ("Warrant"). Every whole Warrant is exercisable into one additional Common Share at an exercise price of $1.10 per share on or before 18 months after the date of closing. Each FT Unit shall consist of one (1) flow-through common share ("FT Share") of the Company and one half of one Warrant.
The Company intends to use the net proceeds from the Offering to advance the Merry Widow massive sulphide properties through to feasibility stage. Specifically, the Company plans to grid drill the Merry Widow along strike and length for the 3.5-kilometer extension. It will also drill extensively along the 8.0-kilometer strike length of the Old Sport Horizon. In addition, funds will be allocated for the property-wide completion of helicopter airborne Mag & EM geophysics, geological mapping, prospecting, environmental assessment, metallurgy, silt sampling, property management, logistics and general working capital.
The gross flow-through proceeds raised will be used for Canadian exploration expenditures (as defined in the Income Tax Act (Canada)) and will be renounced for the 2006 taxation year.
The Offering is expected to close on or about December 11, 2006.
As consideration for acting as agents, the Agents will receive a commission of 7% of the gross proceeds raised, payable in cash or in units of the Company (the "Agent's Units"), at the election of the Agents. The Agent's Units will have the same terms as the Units. In addition, the Agents will receive compensation warrants (the "Agent's Warrants") equal to 8% of the number of Units and FT Units sold pursuant to the Offering. Each Agents' Warrant will be exercisable to purchase one (1) Common Share at an exercise price of $0.85 for a period of 18 months following the closing of the Offering.
The proposed issuance of the securities is subject to the completion of formal documentation and receipt of regulatory approval, including the acceptance of the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS
Alistair MacLennan, President/CEO
About Grande Portage Resources Ltd.
Grande Portage Resources Ltd. is a mineral exploration and development company focused on massive sulphide exploration in British Columbia. Grande Portage is operated by experienced managers and professionals who have been effective in discovery, mine development, and mining operations throughout North and South America, Africa, Europe, and Central Asia.
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". The Company intends that such forward-looking statements be subject to the safe harbours created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from the expected results.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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