Grande Portage Acquires Remaining 35% Interest In Herbert Gold Property
VANCOUVER, BC, July 14, 2016 -- Grande Portage Resources Ltd. (TSX-V GPG) ("Grande Portage" or "the Company") is pleased to announce that it has entered into an agreement (the "Acquisition Agreement") through its wholly-owned subsidiary, GPG Alaska Resources Inc., with Quaterra Alaska, Inc. ("Quaterra"), the wholly-owned subsidiary of Quaterra Resources Inc.(TSX-V QTA), to acquire Quaterra's 35% participating interest in the Herbert Gold project located near Juneau, Alaska (the "Property"). The Company already owns the other 65% interest in the Property, so this acquisition will mean that the Company will own an 100% interest in the Property, subject only to a 5% net smelter returns royalty reserved to an underlying lessor, plus minimum annual advance royalties of US$20,000 due November 1, 2016 and 2017, increasing to US$30,000 in subsequent years.
Under the terms of the Acquisition Agreement, the Company will issue to Quaterra 1,182,331 common shares, and pay Quaterra the sum of US$250,000 upon either: (a) delivery of a feasibility report establishing that the Property can be profitably placed into commercial production, or (b) the change of control of the Company or the sale of the Property. The Acquisition Agreement also includes anti-dilution provisions, whereby Quaterra will be issued additional common shares for no additional consideration, upon the Company's completion of equity financings to raise up to the next $1.0 million only, so that Quaterra's equity interest in the Company will not be less than 9% of the then total issued common shares on a non-diluted basis. Finally, Quaterra has been granted a right to participate in any future equity financings of the Company over the next $1.0 million, in order to maintain its equity interest in the Company at its then current equity interest in the Company on a non-diluted basis.
- National Instrument 43-101 technical report dated April 10, 2013 (filed on SEDAR under the Company's profile on April 19, 2013 at www.sedar.com) demonstrates indicated resources of 821,100 tonnes containing 182,400 oz of gold at 6.91 g/t. Inferred resources of 51,600 tonnes containing 12,800 oz of gold at 7.73 g/t.
- The system consists of at least 6 parallel vein structures.
- Mineralization is open to length and depth.
- Herbert Gold is one of Alaska's more promising prospects occurring in a currently underexplored historical gold bearing district.
- Metallurgical studies have yielded gold recoveries in excess of 94%.
- Baseline environmental water studies are complete.
Drilling results have confirmed the existence of all the major elements of a complex mesothermal gold-quartz vein system with numerous targets. The Company has drilled a total of 108 diamond drill holes from 16 different platforms since 2010. The Herbert Gold Property is host to abundant composite vein-fault structures containing ribbon structure quartz-sulfide veins, and lies prominently within the 100 mile long Juneau gold belt, which has historically produced nearly seven million ounces of gold.
Carl Hale, P. Geo., the qualified person for this project, has reviewed and approved the contents of this press release.
About Grande Portage Resources Ltd.
Grande Portage Resources Ltd. is a Tier 2 publicly traded mineral exploration company, principally focused on the Herbert Gold discovery, situated approximately 25 km north of Juneau, Alaska. The Company will hold an 100% interest in the property upon completion of the above described acquisition, subject to the royalties described above.
The Herbert Gold property has a NI 43-101 technical report completed with indicated resources of 821,100 tonnes containing 182,400 oz of gold at 6.91 g/t. Inferred resources of 51,600 tonnes containing 12,800 oz of gold at 7.73 g/t. The system is open to length and depth and is host to at least six main composite vein-fault structures that contain ribbon structure quartz-sulfide veins. The project lies prominently within the 160km long Juneau Gold Belt, which has produced nearly seven million ounces of gold. Grande Portage conducted an initial drill program in the fall of 2010. The results from the drilling program confirm the identification of major elements of a complex mesothermal gold-quartz system with numerous targets. Subsequently, the Company has conducted follow up drill programs of with a total of 108 diamond drill holes from ten different platform locations.
ON BEHALF OF THE BOARD OF DIRECTORS
Ian Klassen, President
For further information please contact:
Mr. Ian Klassen
Phone: (604) 899-0106
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements.
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