Group Eleven Closes C$5.75M Bought Deal Private Placement, Including Full Exercise of C$750,000 Underwriters' Option

Core Viewpoint - Group Eleven Resources Corp. has successfully closed a private placement offering, raising gross proceeds of C$5,750,000 through the issuance of 17,968,750 common shares at a price of C$0.32 per share [1] Group 1: Offering Details - The offering was completed under an underwriting agreement with Cormark Securities Inc. and Beacon Securities Limited, including the full exercise of the underwriters' option [1] - The net proceeds will be used to expand the exploration drill program at Ballywire from approximately 5,000 meters to 25,000 meters, along with working capital and general corporate purposes [2] - The common shares were sold in Canada under the listed issuer financing exemption and the accredited investor exemption, with specific hold periods applicable [3] Group 2: Underwriters and Compensation - The company paid the underwriters a cash commission of C$314,550 and issued 887,812 compensation warrants, each exercisable at C$0.32 until July 31, 2027 [4] - Glencore Canada Corporation did not exercise its participation right in the offering, maintaining a 14.1% ownership interest in the company post-offering [5] Group 3: Insider Participation - A director of the company acquired 156,250 common shares in the offering, classified as a related party transaction [6] - The company relied on exemptions from formal valuation and minority approval requirements due to the transaction's market capitalization impact [6] - The common shares issued to the insider are subject to a hold period of four months under TSX Venture Exchange policies [7] Group 4: Company Overview - Group Eleven Resources Corp. is engaged in significant mineral exploration in the Republic of Ireland, with the Ballywire discovery showcasing high grades of various minerals [9] - Ballywire is located 20 km from the company's 77.64%-owned Stonepark zinc-lead deposit, adjacent to Glencore's Pallas Green zinc-lead deposit [10]