Eureka Resources Announces Closing of Grant of Option on the FG Property to Canarc

VANCOUVER, Sept. 12, 2016 /CNW/ – Eureka Resources (TSXV:EUK) is pleased to announce that it has closed the grant of an option to Canarc Resource Corp. (“Canarc”) (TSX: CCM) to earn up to a 75% interest in the Company’s FG Property (the “Property”) pursuant to the terms of an option agreement dated August 24, 2016 between the Company and Canarc.
As consideration for the grant of the option, Canarc has issued Eureka 250,000 common shares in the capital of Canarc and has purchased 750,000 units of Eureka at a price of $0.14 per unit for an aggregate purchase price of $105,000. For details of the conditions to be satisfied by Canarc in order to exercise the option and the terms of the Offering, see the Company’s news release dated August 25, 2016.
FG Project
Eureka has held the FG Property (formerly called Frasergold) since 1982. To date, over $15.0 million of exploratory work has been completed by the Company, ASARCO, AMOCO and Hawthorne Gold Corp. The historical exploration has established a Measured and Indicated (376,000 ounces) gold resource at an average grade of 0.776 g/t gold, using a cut-off grade of 0.5 g/t, and an Inferred gold resource (634,900 ounces) at an average grade of 0.718 g/t gold, using a cut-off grade of 0.5 g/t. Mineralization has been outlined over a strike length of 3 kilometres, and has the potential for additional mineralization that could extend along an interpreted strike length of over 10 kilometres. Details of 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.
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