Eureka Resources arranges $150,000 private placement

 
Eureka Resources Inc. (TSXV:EUK) plans to raise up to $150,000 through a private placement of flow-through securities.
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.
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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
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.
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