January 24, 2018

Eureka Closes Second Tranche of Private Placement

2018-0123

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS

EUREKA RESOURCES CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT

Vancouver, British Columbia, January 23, 2018 - Eureka Resources Inc. (“Eureka” or the “Company”) announced today that is has closed the second and final tranche of its non-brokered private placement of common shares previously announced in press releases dated November 27, 2017, December 29, 2017 and January 18, 2018 (the “Offering”).

Eureka placed 4,000,000 common shares in the first tranche of the Offering at $0.025 per share for gross proceeds of $100,000. In connection with closing the first tranche, the Company paid finder’s fees of $4,550. Company insiders purchased 1,500,000 of the shares in the first tranche of the Offering.

Eureka placed 750,000 common shares in the second tranche of the Offering at $0.035 per share for gross proceeds of $26,250. In connection with closing the second tranche, the Company paid finder’s fees of $367. Company insiders purchased 600,000 of the shares in the second tranche of the Offering.

All shares issued pursuant to the Offering are subject to a four-month hold period from the date of issuance under applicable Canadian Securities laws. For shares issued in the second tranche of the Offering, the hold period will expire on May 24, 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 - $26,250;
  • Office rent & communication expenses - $5,000;
  • Transfer agent fees - $5,000;
  • Annual General Meeting expenses - $5,000
  • 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.

Eureka has a 100% interest in the FG Gold property located in the Cariboo Mining Division of British Columbia. Historical exploration has established a Measured and Indicated gold resource of 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 of 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 of British Columbia. Gold Creek is a gold project adjacent, and with similar geology, to the Spanish Mountain gold deposit owned by Spanish Mountain Gold Ltd. (TSXV: SPA).

Eureka has a 100% interest in the Luxor and Tak properties located in the historic Klondike district of the Yukon Territory, a district of major porphyry, breccia and vein mineral occurrences.

Eureka also owns a 50% interest in the Gemini lithium brine project located approximately 40 kms (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.

Further information on Eureka can be found on the Company’s website at www.eurekaresourcesinc.com and at www.sedar.com or by contacting Michael Sweatman, President and CEO, by email at info@eurekaresourcesinc.com or by telephone at (604) 449-2273.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this 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 business and operations of the Company, the Offering and the proposed use of proceeds of the Offering. 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: that the Company may be unable to raise proceeds to close the Offering, that the Company may determine to use the proceeds of the Offering other than as contemplated in this news release; general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive Board of Directors 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

You can view the Next News item:February 27th, 2018, EUREKA ANNOUNCES PROPOSED ACQUISITION OF KORE MINING

You can view the Previous News item:January 18th, 2018, Eureka Amends Terms to Private Placement

Back to the main News page, or press the Back button on your browser.