Eureka Resources signs LOI with Teslin River on Frasergold property
(TSX-V: EUK) 1000 - 355 Burrard Street Vancouver, BC V6C 2G8 Telephone: (604) 608-6154 Facsimile: (604) 602-1989 [email protected]
For Immediate Release Sept. 12, 2011
PRESS RELEASE
Eureka Resources signs LOI with Teslin River on Frasergold property
VANCOUVER, B.C. – Eureka Resources Inc. (TSX-V: EUK) (“Eureka”) has announced the signing of a Letter of Intent (“LOI”) with Teslin River Resources Corp. (TSX-V: TLR)
(“Teslin”) which provides Teslin with an option to acquire up to 75% of Eureka’s Frasergold property, located 100 kilometres east of Williams Lake in the Cariboo area of central B.C.
The two Vancouver-based companies explained that the LOI entitles Teslin to earn a 51% interest in Frasergold by spending $3,550,000 on the property and providing payments to Eureka totalling $200,000 by Dec. 31, 2014. Teslin can earn an additional 24% interest (totalling 75%) by completing a feasibility study. The LOI provides for execution of a definitive agreement within 30 days of its signing.
“We are gratified that Teslin is making this important commitment to the Frasergold property,” says John J. O’Neill, President and CEO, Eureka Resources Inc. “Eureka has been a longtime proponent of Frasergold’s potential.”
Identified by Eureka three decades ago, the Frasergold property now comprises 23 mining claims totalling approximately 3,350 hectares, all in good standing through April, 2015.
Teslin plans to execute a preliminary field program in 2011 to evaluate the potential of extending the resource. An audit of the known resources, leading to a Preliminary Economic Assessment, is to be completed during the first quarter of 2012.
About Eureka Resources Inc.
Since its incorporation in 1981, Eureka Resources Inc. has focused on the exploration and development of natural resource properties in order to create wealth for investors. With successful B.C. entrepreneur John J. O'Neill at the helm, Eureka has long been a steady and trustworthy presence on the province’s mineral-exploration scene. In addition to Eureka's fostering of the Frasergold claim, the company holds the rights to the Lottie Lake copper claim, which is also in central British Columbia. Shares in Eureka Resources Inc. trade on the Venture Exchange of the Toronto Stock Exchange.
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Contact: John J. O’Neill, President and CEO, Eureka Resources Inc., 604.608.6154