Eureka Resources Closes Second Tranche of Private Placement
Eureka Resources Closes Second Tranche of Private
Placement
Vancouver, British Columbia--(Newsfile Corp. - January 23, 2018) -
Eureka Resources Inc. (TSXV: EUK)
("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
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 update or revise any forward-looking statements, whether as a result of new information, future
events, or otherwise.
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