Great Lakes files final prospectus

Great Lakes Resources (TSE) has filed a final prospectus relating to an offering of 17.5 million shares.

At $2 per share, the company will receive proceeds of $35 million. It plans to use $9 million to buy a 20% interest in the Grouse Creek gold project, owned by Hecla Mining (NYSE). About $22 million will be used to fund a pro rata share of capital expenditures needed to bring the Idaho project into production.

Great Lakes has the option (exerciseable during the first 12 months of production) to acquire up to an additional 10% interest.

Grouse Creek has 14.7 million tons of proven and probable reserves grading 0.057 oz. gold and 1.10 oz. silver per ton.

Meanwhile, in northwestern Mexico, the company is acquiring the Lluvia de Oro project in return for completing 5,000 ft. of drilling, mapping, sampling and trenching. Results from this large-tonnage, disseminated gold deposit are under evaluation. Repadre Capital (VSE) owns a 3% net smelter return royalty on the property.