/NOT FOR DISSEMINATION TO THE US/
VANCOUVER, May 6, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) announced today that
it has closed the second tranche of its non-brokered private
placement of units (the "Units") at $0.075 per Unit (the "Offering") announced on
March 7, 2016. Each Unit
consisted of one common share and one common share purchase warrant
(a "Warrant"). Each Warrant entitled the holder to purchase
one common share at $0.125 for a
period of 24 months.
Eureka placed 2,693,666 Units in the first tranche of the
Offering for gross proceeds of $202,025. The Warrants issued in the first
tranche of the Offering expire on April 29,
2018. In connection with closing the first tranche of
the Offering, the Company paid finder's fees of 7% cash totaling
$12,285 and issued 163,800 finder's
warrants (a "Finder's Warrant") representing 7% of the Units placed
by the finders. Each Finder's Warrant entitled the holder to
purchase a Unit at $0.075 per Unit
until April 29, 2018.
Eureka placed 2,033,334 Units in the second tranche of the
Offering for gross proceeds of $152,500. The Warrants issued in the second
tranche of the Offering expire on May
6, 2018. In connection with closing of the second
tranche of the Offering, the Company paid finder's fees of 7% cash
totaling $6,475 and issued 86,333
finder's warrants representing 7% of the Units placed by the
finders. Each Finder's Warrant will entitle the holder to purchase
a Unit at $0.075 per Unit until
May 6, 2018.
All share purchase warrants issued under the Offering, including
those issued as finder's fees, 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.
Securities issued in the first tranche are subject to a hold
period until August 30, 2016, and
securities issued in the second tranche are subject to a hold
period until September 7, 2016,
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.
Proceeds from the Offering will be used for exploration of the
Company's mineral properties and for working capital.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news 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 Company's proposed
financing, objectives, and the business and operations of the
Company. 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: general business, economic and social uncertainties;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; delay or
failure to receive board, shareholder 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 statement, whether as a result of new
information, future events, or otherwise.
SOURCE Eureka Resources, Inc.