Nov 15, 2006
Grande Portage Resources Expands Brokered Financing and Announces Non-Brokered Financing
*** Not for Dissemination in the United States or via US Newswire Services***
VANCOUVER, BC, November 15, 2006 - Grande Portage Resources Ltd. (TSX-V GPG) ("Grande Portage" or "the Company") is pleased to announce that due to a strong response from the investment community, its Board of Directors has elected to increase the maximum amount to be raised under the flow-through portion of the previously announced brokered private placement led by Pacific International Securities Inc. and including Dundee Securities Corporation (November 7, 2006) by up to an additional C$1.0 million, increasing the total offering size from up to C$8.0 million to up to C$9.0 million.
As a result of the increase in the brokered offering, the Company will issue up to 4,250,000 flow-through units ("FT Units") of the Company at $0.80 per FT Unit, to raise gross proceeds of up to C$3.4 million (the "FT Offering"). As previously announced, each FT Unit shall consist of one (1) flow-through common share (a "FT Share") of the Company and one half of one common share purchase warrant (one whole warrant being a "Warrant"). Each Warrant will enable the holder to purchase one additional non flow-through common share at an exercise price of $1.10 per share for a period of 18 months following the closing date. The FT Shares will entitle the Canadian investors under the FT Offering to receive certain income tax benefits. All other terms of the brokered offering will remain the same.
The Company also wishes to announce a non-brokered private placement for up to non flow-through 1,000,000 Units ("Units") at a price of $0.70 per Unit to raise gross proceeds of up to C$700,000. Each Unit shall consist of one common share of the Company and one half of one Warrant. The Warrants shall have the same terms and conditions as those issued pursuant to the brokered offering.
There will be no finder's fee paid in connection with either the brokered or non-brokered offerings.
The proposed issuance of the securities is subject to the completion of formal documentation and receipt of regulatory approval, including the acceptance of the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS
Alistair MacLennan, President/CEO
About Grande Portage Resources Ltd.
Grande Portage Resources Ltd. is a mineral exploration and development company focused on massive sulphide exploration in British Columbia. Grande Portage is operated by experienced managers and professionals who have been effective in discovery, mine development, and mining operations throughout North and South America, Africa, Europe, and Central Asia.
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". These statements involve risks and uncertainties due to the inherent nature of the Company's mineral resource exploration activities, and therefore are subject to change at any time. The Company's actual results may differ materially from the expected results.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
For further information please contact:
Mr. Robin Forshaw
Phone: (604) 803-1775
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.