/NOT FOR DISSEMINATION TO THE US/
VANCOUVER, April 14, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) announced today that
it is extending the closing of its financing previously announced
on March 7, 2016. The Company plans
to raise up to $400,000 by way of
private placement (the "Offering"), which is now extended to
May 14, 2016.
The non-flow through private placement will be comprised of up
to of 5,333,333 units at $0.075 per
unit for total proceeds of up to $400,000. Each unit will be comprised of
one common share and one share purchase warrant entitling the
holder to acquire an additional common share at $0.125 per share for two years from closing.
The proceeds from private placement will be used for
exploration of the Company's properties and working capital.
Finder's fees of 7% cash and 7% warrants may be payable.
Finder's fees warrants will entitle the holder to acquire units
which will include one common share and one share purchase
warrant.
All share purchase warrants issued under the Offering, including
those issued as finder's fees, 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.
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.
How to participate in the Offering
To participate in the Offering, qualifying shareholders and
accredited 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 completed to accredited investors pursuant
to National Instrument 45-106 and to existing shareholders pursuant
to B.C. Instrument 45-534. The offering of securities
pursuant to B.C. Instrument 45-534 is being made to existing
shareholders who held shares of the Company on Friday, March 4, 2016.
Any person who becomes a shareholder after the record date is
not permitted to participate in the Offering using the existing
shareholder exemption but other exemptions may still be available
to them. Shareholders who became shareholders after the record date
should consult their professional advisers when completing their
subscription agreement to ensure that they use the correct
exemption.
About Eureka
Since its incorporation in 1981, Vancouver-based Eureka Resources Inc. has
focused on the exploration and development of natural resource
properties. Its flagship project, the FG Project, (formerly the
Frasergold Project) was the subject of a National Instrument 43-101
("NI 43-101") compliant technical report entitled "NI 43-101
Technical Report Frasergold Exploration Project", dated
July 20, 2015 and amended
July 27, 2015, authored by
K. V. Campbell, Ph.D, P.Geo, and
G. H. Giroux, MA.Sc, P.Eng., and
filed on SEDAR. The FG Project is located 100 kilometres east of
Williams Lake, B.C., with good
summer/fall access by provincial highways and secondary roads.
Eureka recently entered into an interim agreement with Nevada
Sunrise Gold Corporation ("Nevada Sunrise") (TSXV: NEV), which
gives it the right to acquire a 50% participating interest in the
Gemini Lithium Project ("Gemini") located in the western Lida
Valley, Nevada. Gemini hosts two sub-basins that have the
potential for lithium-bearing brines similar to the proven lithium
brine deposits located in the Clayton Valley. Lithium occurs in
economic quantities within brines in the Clayton Valley where the
only producing lithium mine in North
America is located. Gemini is situated in a similar geologic
environment and is 40 kilometres southeast of the Clayton
Valley.
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 in this news release.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain "forward-looking
statements" under applicable Canadian securities legislation that
are not historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to the Company's proposed
financing, objectives, goals or future exploration plans at the FG
Project, its Gemini Lithium project, and the business and
operations of the Company. Forward-looking statements are
necessarily based on a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties and other factors which may cause actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. Such factors
include, but are not limited to: general business, economic and
social uncertainties; litigation, legislative, environmental and
other judicial, regulatory, political and competitive developments;
delay or failure to receive board, shareholder or regulatory
approvals; those additional risks set out in the Company's public
documents filed on SEDAR at www.sedar.com; and other matters
discussed in this news release. Although the Company believes that
the assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. Except where required
by law, the Company disclaims any intention or obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
SOURCE Eureka Resources, Inc.