VANCOUVER, Sept. 12, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) is pleased to announce
that it has closed the grant of an option to Canarc Resource Corp.
("Canarc") (TSX: CCM) to earn up to a 75% interest in the Company's
FG Property (the "Property") pursuant to the terms of an option
agreement dated August 24, 2016
between the Company and Canarc.
As consideration for the grant of the option, Canarc has issued
Eureka 250,000 common shares in the capital of Canarc and has
purchased 750,000 units of Eureka at a price of $0.14 per unit for an aggregate purchase price of
$105,000. For details of the
conditions to be satisfied by Canarc in order to exercise the
option and the terms of the Offering, see the Company's news
release dated August 25, 2016.
FG Project
Eureka has held the FG Property (formerly called Frasergold)
since 1982. To date, over $15.0
million of exploratory work has been completed by the
Company, ASARCO, AMOCO and Hawthorne Gold Corp. The 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. Mineralization has been outlined over a strike
length of 3 kilometres, and has the potential for additional
mineralization that could extend along an interpreted strike length
of over 10 kilometres. 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 on SEDAR or at the Company's website.
Gemini Lithium Project
Eureka owns a 50% participating interest in the Gemini lithium
brine project, located in the western Lida
Valley, located in Esmeralda
County in south central Nevada, approximately 40 kilometres (26 miles)
from North America's only
producing lithium mine at Silver Peak. Gemini currently consists of
247 placer claims totaling 4,940 acres (2,000 hectares). The
Gemini project is located in a flat, desert basin hosting two
interpreted sub-basins and with a similar geological setting to the
Clayton Valley. Recent geophysical work at Gemini has outlined
conductive zones interpreted as brine horizons, which the Company
plans to test by drilling.
John R. Kerr, P.Eng., is the
Company's designated Qualified Person for this news release within
the meaning of NI 43-101 and has reviewed and approved the
technical information described in this news
release.
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
financings, objectives, goals or future exploration plans at the FG
Project and the Gemini Project, including with respect to the grant
of the option on the FG Property to Canarc, the Offering 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 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.