/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US NEWSWIRE
SERVICES./
VANCOUVER, Dec. 16, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) announced today that
it plans to raise up to $150,000
through a private placement of flow through securities (the
"Offering").
The private placement will consist of up to of 1,500,000 units
(the "Flow Through Units") at $0.10
per unit for total proceeds of up to $150,000. Each unit will consist of one
common share and one half share purchase, each whole warrant (a
"Warrant") entitling the holder to acquire an additional common
share that will not be a flow through share, at $0.15 per share for two years from closing.
The Company intends to expend the proceeds from the private
placement for exploration that qualifies as Canadian exploration
expense (as defined in the Income Tax Act (Canada)) on the Company's Canadian properties,
and will renounce such expenditures that do so qualify to
purchasers of the Flow Through Units.
Finder's fees of 6% cash and 6% warrants (the "Finder's
Warrants") may be payable. Each Finder's Warrant will entitle
the holder to acquire a unit consisting of one common non
flow through share and Warrant, at a price of $0.10 per unit.
All share purchase warrants issued under the Offering, including
the Finder's Warrants and the warrants underlying the Finder's
Warrants, will be subject to an acceleration clause which will
cause the warrants, if unexercised, to expire on the date which is
30 days after the date that the volume weighted average trading
price of the Company's common shares on the TSX Venture Exchange
exceeds $0.25 per share over a period
of 10 consecutive trading days and the Company gives notice by
issuing a press release.
All securities issued in the Offering will be subject to a
four‐month hold period, during which time the securities may not be
traded. The securities described herein have not been
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United
States unless registered under the Act or unless an
exemption from registration is available. The Offering is
subject to regulatory approval.
How to participate in the Offering
To participate in the Offering, investors must complete the
applicable subscription agreement and return the completed
subscription agreement along with a certified cheque or bank draft
for the total purchase price payable to Eureka Resources Inc., at
Suite 1100-1111 Melville Street, Vancouver, B.C., V6E 3V6. A subscription
agreement may be obtained by contacting the Company directly at
(604) 449-2273 or by e-mailing info@eurekaresourcesinc.com.
Participation is subject to available space and is at the
discretion of the Company. Shareholders and interested investors
are encouraged to return completed subscription agreements promptly
using commercial couriers or priority post.
About the Offering
The Offering will be available to accredited investors (as
defined in National Instrument 45-106), and other purchasers
subject to the availability of exemptions from the prospectus
requirements of Canadian securities laws .
About Eureka
Eureka is an exploration-focused company located in Vancouver, BC whose strategy is to acquire
projects in prospective areas that have the potential to deliver
important discoveries and create value for shareholders.
Gemini Lithium Brine Project,
South-Central Nevada
Eureka owns a 50% interest in this project located approximately
40 km (26 miles) from Silver Peak, North
America's only producing lithium mine. It is in a
similar geological setting to the Clayton Valley and recent
geophysical work has outlined conductive zones interpreted as brine
horizons at Gemini, which will be tested by drilling expected to
commence in late 2016 or early 2017. Advantage Lithium Corp. (TSXV:
AAL, "Advantage") has entered into an option agreement to earn a
50% interest in Gemini from Nevada Sunrise Gold Corp.
Luxor Project Yukon
Territory
Luxor is located in the White Gold area in the Dawson Range Gold
Belt of the western Yukon, a
district of major porphyry, breccia and vein occurrences in a very
active area of the Yukon
Territory. Neighboring properties include the Coffee deposit
recently acquired by Goldcorp; Western Copper and Gold
Corporation's Casino deposit and Independence Gold projects. The
Project is accessed via a well-maintained Territorial gravel road
from Dawson City.
Placer gold mining in the Klondike area has been active since
the late 1890's Yukon Gold Rush. Bedrock exploration commenced in
the area in the 1970s, with the development of the Casino
property.
FG (formerly Frasergold)
Project, Cariboo Gold District, BC
The project is located at the headwaters of the Horsefly River,
50km east of Horsefly, BC. Over
$15.0 million of exploration work has
been completed on this project, establishing a Measured and
Indicated resource of 376,000 ounces of gold at an average grade of
0.776 g/t (using a 0.5 g/t cut-off), and an Inferred resource of
634,900 ounces of gold at an average grade of 0.718 g/t (using a
0.5 g/t cut-off). Mineralization has been outlined over a 3 km
strike length, and additional mineralization could extend along an
interpreted 10 km strike length. Further details on the gold
resource can be found in "NI 43-101 Technical Report, Frasergold
Exploration Project, Cariboo Mining Division, dated July 27, 2015" available on SEDAR or at the
Company's website. Canarc Resource Corp (TSX CCM) has an option to
earn a 75% interest in the FG Project.
Gold Creek Project, Cariboo
Gold District, BC
The project is located 2 km north of the Village of Likely,
BC. Gold occurs in the same Mesozoic sedimentary package as
at Spanish Mountain and the Company's FG property. There are
numerous soil anomalies on the property over a 12 km strike length.
Much of the property is covered by overburden and remains virtually
unexplored. Limited percussion drilling was completed in the 1980s,
with anomalous values of gold up to 1.1g/t reported over a hole
length of 1.5 m.
John R. Kerr, P.Eng., is the
Company's designated Qualified Person for this news release within
the meaning of NI 43-101 and has reviewed and approved the
technical information described in this news
release.
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain "forward-looking
statements" under applicable Canadian securities legislation that
are not historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to the Company's proposed
financings, objectives, goals and future exploration plans at the
Gemini Project and the FG Project, the costs related to the
Company's proposed exploration programs, and the business and
operations of the Company. Forward-looking statements are
necessarily based on a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties and other factors which may cause actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. Such factors
include, but are not limited to: general business, economic and
social uncertainties; litigation, legislative, environmental and
other judicial, regulatory, political and competitive developments;
delay or failure to receive board or regulatory approvals; those
additional risks set out in the Company's public documents filed on
SEDAR at www.sedar.com; and other matters discussed in this news
release. Although the Company believes that the assumptions and
factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
SOURCE Eureka Resources, Inc.