Grande Portage Resources Ltd. (TSXV:GPG) (OTCQX:GPTRF) (FSE:GPB) announced that it has signed a definitive gold purchase agreement with Ocean Partners (UK) Ltd., a metals trading and mining finance group.
Under the agreement, Ocean Partners will purchase up to 100% of production from Grande Portage’s New Amalga property in Alaska during the first seven years of commercial operations, subject to minimum tonnage requirements and other applicable conditions, according to a company press release.
The agreement provides greater certainty around metal payments and payables across various product grades and includes flexible termination rights. Grande Portage said the agreement can also be incorporated into its economic studies, ranging from a preliminary economic assessment (PEA) through to a feasibility study.
A previously announced $25 million revolving credit facility with Ocean Partners remains subject to customary conditions, including the completion of due diligence and legal documentation.
Ian Klassen, CEO of Grande Portage, said the agreement represents an important milestone in the company’s progress toward production. The company’s direct-ore-shipping platform is designed to eliminate the need for on-site processing facilities and mine tailings storage facilities.
The New Amalga Gold Project is currently completing baseline environmental studies. Grande Portage plans to submit a Plan of Operations to the U.S. Forest Service in the first quarter of 2027, initiating the federal environmental review process.
Grande Portage owns 100% of the New Amalga property, located approximately 25 kilometers north of Juneau, Alaska. The project’s mineral resource estimate, effective July 17, 2024, includes 1,438,500 ounces of indicated gold resources at an average grade of 9.47 grams per tonne, along with 515,700 ounces of inferred gold resources at an average grade of 8.85 grams per tonne.