Grande Portage Finalizes Joint Venture with Quaterra
VANCOUVER, BC, October 26, 2011 - Grande Portage Resources Ltd. (TSX-V GPG) ("Grande Portage" or "the Company") is pleased to announce that its wholly-owned Alaskan subsidiary has entered into a joint venture agreement with Quaterra Alaska Inc. ("Quaterra"), a wholly-owned subsidiary of Quaterra Resources Inc. (TSX-V: "QTA", NYSE Amex: "QMM") for the Herbert Glacier gold project located near Juneau, Alaska (the "Herbert Glacier Project"). The Herbert Glacier Project consists of a mining lease among Quaterra and certain underlying property owners covering 17 mining claims (the "Mining Lease"), as well as an additional 74 mining claims which have been added to the project since 2007. Pursuant to the Mining Lease, the Herbert Glacier Project is subject to net smelter returns royalty of 5% and minimum annual advance royalties of US$30,000 to the underlying property owners.
GPG has acquired a 65% interest in the Herbert Glacier Project, and Quaterra retains a 35% interest. Grande Portage and Quaterra have formed the joint venture for the further exploration and development of the project, with each party bearing their proportionate share of such costs. If any party does not contribute their proportionate share of such costs, then the joint venture agreement includes a dilution formula whereby if any party's interest is reduced to 10% or less, its interest will be automatically converted into a 1% net smelter returns royalty, which may be acquired by the other party at any time for US $1 million.
To date, the Company has completed 46 drill holes from 9 platforms totaling 6532 metres of NQ diamond drilling.
This news release has been prepared and approved by Carl Hale, CPG, a geologist with more than 40 years experience and a Qualified Person as defined under NI #43-101. Mr. Hale is supported by C. C. Hawley, Ph.D., CPG of Hawley Resource Group, Inc. and Alaska Earth Sciences, Inc. of Anchorage, Alaska
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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