Eastmain Resources Announces C$5 Million Bought Deal Private Placement
June 14 2018 - 9:06AM
THIS NEWS RELEASE IS NOT FOR
DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES
Eastmain Resources Inc. (TSX:ER) (OTCQX:EANRF)
(“Eastmain” or the “Company”) is pleased to announce that it has
entered into an agreement with a syndicate of underwriters led by
Industrial Alliance Securities Inc., pursuant to which the
underwriters have agreed to purchase, on a “bought deal” private
placement basis, C$5,000,000 of securities of the Company (the
“Offering”). The Offering consists of a minimum of C$1,000,000 of
units of the Company (“Hard Units”) at a price of $0.235 per Hard
Unit and the remaining balance of flow-through shares of the
Company in any combination of Quebec flow-through common shares of
the Company (the “Quebec FT Shares”) at a price of $0.30 per Quebec
FT Share and Federal flow-through common shares of the Company (the
“Federal FT Shares”) at a price of $0.28 per Federal FT Share
(together with the Quebec FT Shares, the “FT Shares”).
Each Hard Unit will consist of one common share
of the Company and one-half of one common share purchase warrant
(each whole common share purchase warrant, a “Warrant”). Each
Warrant will entitle the holder to acquire one common share of the
Company for 2 years from the closing of the Offering (the
“Closing”) at a price of $0.35.
The Company has also granted the underwriters an
option to purchase up to an additional C$750,000 of Hard Units,
Quebec FT Shares and/or Federal FT Shares, in such proportion as
the underwriters may determine, exercisable at any time until 48
hours prior to Closing, to cover over-allotments, if any.
The net proceeds from the sale of the Hard Units
will be used to fund the exploration and development of the
Company’s Québec mineral concessions and for general corporate and
working capital purposes. The gross proceeds received by the
Company from the sale of the FT Shares will be used to incur
Canadian Exploration Expenses (“CEE”) that are “flow-through mining
expenditures” (as such terms are defined in the Income Tax Act
(Canada) and the Taxation Act (Quebec)) on the Company’s properties
in Québec, which will be renounced to the subscribers with an
effective date no later than December 31, 2018, in the aggregate
amount of not less than the total amount of the gross proceeds
raised from the issue of FT Shares.
The Offering is scheduled to close on or about
July 5, 2018 and is subject to certain conditions including, but
not limited to, the receipt of all necessary regulatory and other
approvals including the approval of the Toronto Stock Exchange and
the securities regulatory authorities.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws
and may not be offered or sold within the United States or to or
for the account or benefit of a U.S. person (as defined in
Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
About Eastmain Resources Inc. (TSX:ER)
(OTCQX:EANRF) Eastmain is a Canadian exploration company
advancing three high-grade gold assets in the emerging James Bay
gold camp in Québec. The company holds a 100% interest in the Eau
Claire Project, for which it recently issued a Preliminary Economic
Assessment (“PEA”) and the Eastmain Mine Project where the Company
has prepared NI 43-101 Mineral Resource Estimates in 2018. Eastmain
is also a partner in the Éléonore South Joint Venture located
immediately south of Goldcorp Inc.'s Éléonore Mine which hosts a
new high-grade gold discovery found in late 2017. In addition, the
company has a pipeline of exploration projects in this favourable
mining jurisdiction with nearby infrastructure.
For more information: Claude Lemasson,
President and CEO +1 647-347-3765 lemasson@eastmain.com
Laurenn Russell, Investor Relations Consultant+1 647-347-3735
lrussell@eastmain.com
Forward- Looking Statements – Certain
information set forth in this news release may contain
forward-looking statements that involve substantial known and
unknown risks and uncertainties. Forward-looking statements consist
of statements that are not purely historical, including statements
regarding beliefs, plans, expectations or timing of future plans,
and include, but not limited to, statements with respect to the
potential success of the Company’s future exploration and
development strategies. These forward-looking statements are
subject to numerous risks and uncertainties, certain of which are
beyond the control of Eastmain, including, but not limited to the
impact of general economic conditions, industry conditions,
dependence upon regulatory approvals, the availability of
financing, timely completion of proposed studies and technical
reports, and risks associated with the exploration, development and
mining industry generally such as economic factors as they affect
exploration, future commodity prices, changes in interest rates,
safety and security, political, social or economic developments,
environmental risks, insurance risks, capital expenditures,
operating or technical difficulties in connection with development
activities, personnel relations, the speculative nature of gold
exploration and development, including the risks of diminishing
quantities of grades of Mineral Resources, contests over property
title, and changes in project parameters as plans continue to be
refined. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
The Company assumes no obligation to update such information,
except as may be required by law.