Eureka Announces Option Earn-In with Canarc on the FG Property and Private Placement

Vancouver, British Columbia, August 25, 2016 – Eureka Resources (TSXV:EUK) is pleased to announce that it has entered into an option agreement dated August 24, 2016 (the “Agreement”) with Canarc Resource Corp. (“Canarc”) which provides Canarc the ability to earn up to a 75% interest in the Company’s FG Property (the “Property”). The Agreement is subject to the approval of the TSX Venture Exchange (the “TSXV”).
Michael Sweatman, CEO of Eureka, stated, “We are extremely happy to have attracted a group with the financial resources and technical expertise of Canarc. Brad Cooke, Chairman of Canarc, and his team are industry leaders with a long track record of success. Canarc will advance the FG Property, bringing value to Eureka without further dilution of the company.”
The Company also announces that it plans to raise up to $420,000 by offering 3,000,000 units of the Company at a price of $0.14 per unit (the “Offering”). Each unit will consist of one common share of Eureka and one warrant, each warrant entitles the holder to acquire an additional half common share at $0.20 per share for two years from the closing of the Offering. All warrants issued under the Offering will be subject to an acceleration clause.
The proceeds of the Offering will be used for working capital and for exploration on the Company’s Gemini property (“Gemini”), The exploration program is estimated to cost US$500,000. Eureka is required to contribute 50% of these costs (US$250,000) to maintain its 50% interest.
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