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Grande Portage picks up on Sprott backing

Shares in Alaska-focused junior Grande Portage Resources shot up almost 66% on Friday as the company announced high-profile investor Eric Sprott would become its biggest backer.
Grande Portage picks up on Sprott backing Grande Portage picks up on Sprott backing Grande Portage picks up on Sprott backing Grande Portage picks up on Sprott backing Grande Portage picks up on Sprott backing

Drilling at Grande Portage Resources’ Herbert gold project in Alaska

Staff reporter

It said Sprott had agreed to invest C$3 million and acquire 10 million of the 10.5 million units on offer, in a non-brokered private placement priced at 30c which was designed to raise $3.15 million.

"His investment makes him the largest single investor in the company and is a strong endorsement of our ongoing efforts to increase our gold resource at the Herbert gold project in southeast Alaska, where we are currently conducting a drill programme," president and CEO Ian Klassen said.

The company had announced a high-grade resource in 2019 for Herbert, comprising an indicated 1.88 million tonnes at 10.03g/t for 606,500 ounces and an inferred 553,429t at 14.15g/t for 251,700oz.

Grande Portage said last week it intended to drill 18-20 holes from up to four different platforms, to test up to four separate major veins and their satellite structures at Herbert this summer.

It said it was using two 12-hour shifts per day and was observing protocols and the evolving COVID-19 situation, and would proactively act to protect the health of its workforce.

Herbert lies 25km north of Juneau.

In a presentation this month, Grande Portage said it was also aiming to acquire permits to drill underground and conduct a 50,000t bulk sample.

The company had last raised about $500,000 at 12c per unit in February.

Its shares (TSX: GPG) touched 59c intraday, a level last seen in October 2017.

They closed up 65.7% to 58c, capitalising it about $39 million (US$29 million).