Vancouver, British Columbia--(Newsfile Corp. - March 1, 2017) - Eureka Resources Inc. (TSXV: EUK) ("Eureka" or the "Company") announced today that it plans to raise up to $1,000,000 in a private placement of securities (the "Offering").
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.
All securities issued under 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, 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 This email address is being protected from spambots. You need JavaScript enabled to view it.. 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.
