Group Eleven raises C$12M in private placement for drilling expansion

Group Eleven Resources Corp. (TSXV: ZNG) completed a private placement raising C$12,000,825 through the issuance of 13,334,250 common shares at C$0.90 per share, the company announced March 11.

The bought deal offering included the full exercise of underwriters' option for C$1.56 million. ATB Cormark Capital Markets served as lead underwriter and sole bookrunner alongside Beacon Securities Limited.

The Vancouver-based mineral exploration company plans to use proceeds to expand its drilling program at Ballywire from approximately 17,000 meters to approximately 51,500 meters and increase drilling at Stonepark from approximately 3,000 meters to approximately 15,500 meters. Remaining funds will support general corporate and working capital purposes.

Group Eleven paid underwriters an aggregate cash commission of C$468,139.50. Glencore Canada Corporation, which holds approximately 13.0% ownership in the company following the offering, did not exercise its participation right.

A company director participated in the offering as a related party transaction under securities regulations. The shares issued to this insider are subject to a four-month hold period under TSX Venture Exchange policies.

The common shares were offered in Canada under the listed issuer financing exemption and in certain international jurisdictions without prospectus requirements. The shares are not subject to a hold period except for the insider purchaser.

Group Eleven operates zinc and lead exploration projects in Ireland, including the Ballywire discovery announced in September 2022 and the 77.64%-owned Stonepark deposit. The company's largest shareholders are Michael Gentile at 13.4% and Glencore Canada Corporation at 13.0%.

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