Eureka Closes Private Placement for $70,700

Eureka Resources (TSXV:EUK) has closed its non-brokered private placement of flow-through units at 10 cents per flow-through unit. Each Flow Through Unit consists of one common share (a “Share”) and one half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant will entitle the holder to purchase one non-flow through common share at $0.15 for a period expiring 24 months following the closing date of the Offering. The shares issued will be subject four month hold period which will expire on May 1, 2017.
Eureka placed 707,000 Units in the Offering for gross proceeds of $70,700. In connection with closing the Offering, the Company paid finder’s fees of 6% cash totaling $1,992 and issued 19,920 finder’s warrants (each a “Finder’s Warrant”) representing 6% of the Flow Through Units placed by the finder. 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.
Insiders of the Company acquired 225,000 units, or approximately 31.82%.
All share purchase warrants issued under the Offering, including those issued as finder’s fees, 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.
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.
Proceeds from the Offering will be used 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 Units.
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