Vancouver, British Columbia--(Newsfile Corp. - April 7, 2017) - Eureka Resources Inc. (TSXV: EUK) ("Eureka" or the "Company") announces that it has amended the terms of its non-brokered private placement financing announced on March 1, 2017 (the "Offering").
The Offering will consist of: (i) up to 5,000,000 units (each, a "Unit") at a price of $0.09 per Unit for gross proceeds of up to $450,000, and (ii) up to 5,000,000 flow-through units (each, a "Flow-Through Unit") at a price of $0.10 per Flow-Through Unit for gross proceeds of up to $500,000.
Each Unit will consist of one common share in the capital of the Company (each, a "Share") and one half of one share purchase warrant (with each whole warrant being, a "Warrant"), with each Warrant entitling the holder to acquire one Share at a price of $0.15 per Share for a period of two years from the closing of the Offering.
Each Flow-Through Unit will consist of one Share, issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) and one half of one Warrant, issued on a non-flow-through basis, with each whole Warrant entitling the holder to acquire one Share at a price of $0.15 per Share for a period of two years from the closing of the Offering.
All of the 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 Shares on the TSX Venture Exchange (the "TSXV") exceeds $0.25 per Share over a period of 10 consecutive trading days and the Company gives notice by issuing a press release.
Finders' fees may be payable in connection with the Offering in accordance with the policies of the TSXV. All securities issued in connection with the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Completion of the Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSXV. The proceeds of the Offering will be used for exploration of the Company's mineral properties and for working capital purposes.
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. 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 under the Company's profile on SEDAR or on 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.
Yukon Territory, Canada
Eureka's 100% owned Luxor property consists of three non-contiguous claim blocks totalling 360 mining claims. Luxor is located in the Dawson Range Gold Belt, a district of major porphyry, breccia and vein occurrences.
Eureka's 100% owned TAK property is also located in the Dawson Range Gold Belt and consists of 82 mining claims.
Neighbouring properties to Luxor and TAK include the Coffee deposit recently acquired by Goldcorp.
Nevada, USA
Eureka owns a 50 percent 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.
Further information on Eureka can be found on the Company's website at www.eurekaresourcesinc.com
