Jan 10, 2006
Grande Portage Significantly Increases Area Around Its Merry Widow Property
Vancouver, B.C., January 10, 2006: Grande Portage Resources Ltd. (TSX-V "GPG") ("Grande Portage" or "the Company") is pleased to announce that it has significantly increased its mineral claims' holdings by staking new ground totaling 5,239 hectares immediately south and east of its current holdings at its Merry Widow Project near Port Hardy on northern Vancouver Island, B.C. The original holdings comprised of an option on 45 crown granted claims in addition to a 5 unit and 20 unit claim block totaling in excess of 1,000 hectares.
The Company has also reached an agreement in principal with Red Lake Resources Inc. ("Red Lake") to earn up to 75% of the 1,423 hectares held under option by Red Lake in the Teihsum River area, adjoining immediately southwest of the Company's Merry Widow Project. Red Lake must issue a further 200,000 shares under its option to the underlying property owner. The Company must make cash payments totaling $90,000 over 3 years to the underlying property owner, and spend a total of $1.0 million on exploration on the property, consisting of: (i) $500,000 in exploration on the property by November 1, 2008 to earn a 50% interest in the property, and (ii) an additional $500,000 in exploration by November 1, 2010, to earn an additional 20%, for an aggregate interest of 75%. Grande Portage will be the Operator throughout. The property will also be subject to a 2.5% NSR to the underlying property owner. The agreement is subject to acceptance by the Boards of both companies, and approval of the TSX Venture Exchange.
Finally, the Company has also negotiated the right of first refusal on options to purchase two smaller, but strategic parcels of claims, adjacent northeast and northwest to its current crown grants. For a cash payment of $5,000 on each property, the Company will have 90 days to conduct due diligence on the claims, which would add another 329 hectares to Grande Portage's holdings. Should it exercise its options, or either of them, the Company would be required to make cash payments totaling $100,000 on each property to be acquired over 3 years and issue 400,000 shares on each property over 3 years. Each of the properties will be subject to a 3.0% NSR reserved to the original owners.
In summary, the Company now owns or controls through option agreements a total area surrounding the former producing Benson Lake Mine in excess of 8,000 hectares.
About Grande Portage Resources Ltd.
Grande Portage Resources Ltd. is a mineral exploration and development company focused on exploration in areas within Canada, and in particular British Columbia, which have the potential for primary discoveries of gold and base metal projects. Grande Portage is operated by experienced managers and professionals who have been effective in discovery, mine development, and mining operations throughout North America, Africa, Europe, and Central Asia.
For further information please contact:
Phone: (416) 832-0442
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.