VANCOUVER , Oct. 17, 2016 /CNW/ – Eureka Resources (TSXV:EUK) is pleased provide an update to our shareholders and interested stakeholders.
Eureka has made excellent progress over the last several months on both the Gemini Lithium Project (“Gemini”) and the FG Gold Project (“FG Project”). In addition, the Company is currently reviewing potential acquisitions.
Gemini Lithium Project
Completion of pre-exploration work; significant achievements include the following:
- Execution of a Definitive Joint Venture Agreement with Nevada Sunrise Gold Corporation (“Nevada Sunrise”) (NEV.V);
- Selection of drill targets;
- Placement of a reclamation bond;
- Completion of an archaeological survey;
- Receipt of final exploration permit received from the Nevada Bureau of Land Management;
The exploration program for Gemini is estimated to cost approximately US$400,000 . Eureka is required to contribute 50% of these costs (US$200,000) . The Company is in the process of completing a private placement of up to 3,500,000 units at $0.10 per unit, with each unit consisting of one common share and one-half of a share purchase warrant. Each whole warrant will entitle the holder to purchase an additional common share for 15 cents per share for two years from the date of issuance of the warrant. There is no minimum number of units being offered.
The proceeds of the private placement will be used for the drilling program at Gemini. The timing of the drill program is dependent on the availability of a drill rig and required staffing.