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Grande Portage Resources raising C$5.5M to advance Herbert gold project

Grande Portage Resources Ltd. said June 13 that it signed an agreement with Mackie Research Capital Corp. for a short form prospectus offering to raise up to C$5.5 million.

The offering will comprise up to 27.5 million units of the company at 20 cents apiece. Each unit will consist of one share and half of a share purchase warrant, while each whole warrant allows the holder to acquire an additional share at 27.5 cents each within a year following closing, which is expected by July 31.

Grande Portage also granted the agent a 15% overallotment option.

Proceeds from the offering will be used to fund the exploration and development of the company's Herbert gold project in Alaska, and for general working capital.

The Herbert property is located within the Juneau Gold Belt and hosts indicated resources of 257,950 ounces of gold and inferred resources of 82,200 ounces of gold.