Eastmain Resources Announces Closing of C$5.75M Bought Deal Private Placement
July 05 2018 - 12:12PM
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
closed its previously announced bought deal private placement,
including the full amount of the over-allotment option, for
aggregate gross proceeds of C$5.75 million (the “Offering”),
consisting of 11,935,321 units of the Company (“Hard Units”) at a
price $0.235 per Hard Unit, 2,100,000 Quebec flow-through common
shares of the Company (the “Quebec FT Shares”) at a price of $0.30
per Quebec FT Share and 8,268,570 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”). The Offering was completed pursuant to an underwriting
agreement with a syndicate of underwriters led by Industrial
Alliance Securities Inc. and including Cormark Securities Inc.,
Laurentian Bank Securities Inc., Echelon Wealth Partners Inc., GMP
Securities L.P., Paradigm Capital Inc. and Elemental Capital
Partners LLP.
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 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.
All securities issued and issuable pursuant to the Offering are
subject to a statutory hold period expiring November 6, 2018.
The Offering remains subject to the final approval of the Toronto
Stock Exchange.
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.