Grande Portage Resources (TSX:GPG) has signed a definitive gold purchase agreement with Ocean Partners (UK) for its New Amalga Gold Project in Alaska, US.
The agreement covers the sale of up to 100% of production from the project for the first seven years of commercial operation, subject to minimum tonnage requirements and typical conditions precedent. The contract also includes flexible termination rights.
Grand Portage says the deal provides certainty regarding metal payabilities and deductions at various product grades, which can be used to optimise economic studies, from preliminary economic assessment to Feasibility Study.
In June, the company announced it was working towards both the offtake agreement and a US$25 million ($36.07 million) revolving credit facility with Ocean Partners. The credit facility remains subject to conditions precedent, including completion of confirmatory due diligence and legal documentation.
CEO Ian Klassen says the agreement with Ocean Partners is “another major milestone in the company’s path to production”.
“Ocean Partners is internationally respected with a rich experience in metals trading, mine finance and operations,” Klassen says.
“We are delighted to have secured a definitive offtake agreement with them and feel this significantly enhances our direct shipping ore platform that avoids an on-site processing plant and tailings facility to minimise capex and expedite permitting.”
The New Amalga Gold Project sits approximately 25km north of Juneau, Alaska, within the 160km-long Juneau gold belt which has produced over 8 million ounces (Moz) of gold (Au).
Grande Portage’s mineral resource estimate consists of an indicated resource of 1.44Moz Au @ 9.47 grams per tonne Au across 4.73 million tonnes (Mt), plus an inferred resource of 515,700 ounces at 8.85g/t Au across 1.81Mt.
The project also contains indicated silver resources of 891,600 ounces @ 5.86g/t silver (Ag) and inferred silver resources of 390,600 ounces @ 7.33g/t Ag.
The company is in the final stages of comprehensive baseline studies at New Amalga, with plans to submit a mining plan of operations to the US Forest Service in Q1 2027 to initiate the federal environmental review process under the National Environmental Policy Act.
Grande Portage Resources is a Canadian mineral explorer focused on advancing the New Amalga Mine Project.
Write to Paula Fabe at Mining.com.au
Main image: Grande Portage
