Eureka Resources Inc. (TSXV: EUK) ("Eureka" or the "Company") announced today that is has closed the first tranche of its non-brokered $175,000 private placement of 7,000,000 common shares (the "Shares"), at $0.025 per common share, previously announced November 27, 2017 (the "Offering").
Eureka placed 4,000,000 Shares in the first tranche of the Offering for gross proceeds of $100,000. In connection with closing the first tranche, the Company paid finder's fees of 7% cash totaling $4,550. Company insiders purchased 1,500,000 of the Shares in the first tranche of the Offering.
All Shares issued in the Offering will be subject to a four-month hold period from the date of issuance under applicable Canadian Securities laws. For Shares issued in the first tranche of the Offering, the hold period will expire on April 29, 2018.
The Company intends to allocate the net proceeds from the Offering (subject to the deduction of applicable finder's fees) as follows:
- Legal and accounting fees - $25,000;
- Regulatory fees - $10,000;
- General liabilities - $50,000;
- Office rent & communication expenses - $5,000;
- Transfer agent fees - $5,000;
- Annual General Meeting expenses - $5,000
- Accrued management and administrative fees - $25,000;
- Working capital - $50,000.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the Shares in the United States. The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
ABOUT EUREKA
Eureka is a mineral exploration company based in Vancouver, British Columbia that has acquired projects with discovery potential in prospective areas of Canada and the United States.
Eureka's mineral property assets include the 100%-owned FG Gold property located in the Cariboo Mining Division. Historical exploration has established a Measured and Indicated gold resource (376,000 ounces) 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 under Eureka's profile on SEDAR or on its website.
Eureka has a 100% interest in the Gold Creek property located in the Cariboo Mining Division. Gold Creek is a gold project adjacent, and with similar geology, to the Spanish Mountain gold deposit owned by Spanish Mountain Gold Ltd.
Eureka owns a 100% interest 442 mining claims in the historic Klondike district of the Yukon located in the Dawson Range Gold Belt, a district of major porphyry, breccia and vein mineral occurrences. The Company also owns a 50% interest in the Gemini lithium brine project located approximately 40 km (26 miles) south of North America's only producing lithium mine at Silver Peak, Nevada.
Kristian Whitehead, P.Geo., the Company's designated Qualified Person for this news release within the meaning of NI 43-101, has reviewed and approved the technical information contained in this news release.
