Eureka Resources arranges $1-million financing

 
Eureka Resources ( TSXV:EUK) plans to raise up to $1-million in a private placement of securities.
The private placement will consist of up to of 10,000,000 units (the “Units”) at $0.10 per unit for gross proceeds of up to $1,000,000. Each unit will consist of one common share and one-half of one share purchase warrant. Each whole warrant (a “Warrant”) will entitle the holder to purchase an additional common share at $0.15 per share for two years from closing. The Company intends to expend the proceeds of the private placement on exploration of its mineral properties and for working capital.
Finder’s fees of 6% cash and 6% warrants (the “Finder’s Warrants”) may be payable on certain subscriptions. Each Finder’s Warrant will entitle the holder to purchase a unit with the same terms as the private placement units at $0.10 per unit for two years from closing.
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.
How to participate in the Offering:
To participate in the Offering, investors must complete an 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.
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 based in Vancouver, British Columbia whose strategy is to acquire projects in prospective areas that have the potential to deliver important new discoveries to create value for its shareholders.
British Columbia, Canada
Eureka’s 100% owned FG Gold property is an advanced-stage gold project located in the Cariboo Mining Division and currently under option to Canarc Resources Corp (TSXV: CCM). 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. 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.
Eureka has the option to earn a 100% interest in the Gold Creek property located in the Cariboo Mining Division. Gold Creek is a grassroots gold project neighbouring, and with similar geology to the Spanish Mountain deposit owned by Spanish Mountain Gold Ltd. (TSXV: SPA).
Kristian Whitehead, P.Geo., and John Kerr, P. Eng., are the Company’s designated Qualified Persons for this news release within the meaning of NI 43-101 and have reviewed and approved the technical information described in this news release.
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