Grande Portage Resources (TSXV: GPG) this morning announced that it will be conducting a private placement. The placement will see gross proceeds of $2.5 million, with the offering being led by that of Crescat Capital.
Under the terms of the financing, units of the company are to be priced at $0.48 per each, with each unit containing one common share and one half of a common share purchase warrant. Each warrant is valid for a period of 24 months from the date of closing, at a price of $0.72 per share.
Net proceeds of the offering are to be used for the advancement of the firms Herbert Gold property located in southeast Alaska, as well as general working capital purposes.
“Grande Portage is building a solid high-grade resource at Herbert. We find it an exceptional opportunity to get into a solid growing gold project in an environment where high quality resources are going to be aggressively sought by miners. Grande Portage has aggressive plans to drill this year, exactly what is needed to quickly build this resource into something that is simply too enticing for a host of suitors to resist.”
Quinton Hennigh, technical advisor at Crescat Capital
The financing is expected to close by June 7, with Crescat Capital acting as lead investor.
Grande Portage Resources last traded at $0.49 on the TSX Venture.
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