Grande Portage Resources (TSXV: GPG) has signed a definitive gold purchase agreement with Ocean Partners, covering up to 100% of production from its New Amalga gold project in southeast Alaska.
The offtake runs for the first 7 years of commercial operation and is subject to a minimum tonnage requirement along with customary conditions precedent. It formalizes terms first outlined by the two companies in June.
The agreement sets metal payabilities and deductions across a range of product grades, giving the company fixed commercial terms to carry into its economic studies as New Amalga advances from a preliminary economic assessment toward a feasibility study. It also includes flexible termination rights.
The financing piece is still pending. A definitive agreement for the US$25 million revolving credit facility, announced alongside the offtake in June, remains subject to conditions precedent, including confirmatory due diligence and legal documentation.
CEO Ian Klassen called the agreement “another major milestone in the Company’s path to production.” He said the deal strengthens the company’s direct shipping ore model, which avoids an onsite processing plant and tailings facility in order to keep capital costs down and speed up permitting.
Permitting is the next major step. Grande Portage is in the final stages of baseline environmental studies and plans to submit a mining Plan of Operations to the US Forest Service in Q1 2027, which would formally start the federal environmental review process under NEPA. The project’s federal permitting schedule was recently posted to the FAST-41 dashboard.
New Amalga, which is wholly owned by the company, hosts 1.44 million ounces of indicated gold and 515,700 ounces of inferred gold. A PEA completed in April suggested the project could produce an average of 150,000 ounces of gold a year over a seven year life of mine.
Grande Portage Resources last traded at $0.31 on the TSX Venture.