EUREKA RESOURCES INC. ("EUK")
BULLETIN TYPE: Property-Asset or Share Disposition Agreement
BULLETIN DATE: September 28, 2016
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing an arm's length option agreement dated August 24, 2016 as entered into between Eureka Resources Inc. (the Company) and Canarc Resource Corp., (Canarc), whereby Canarc can earn up to a 75% interest in the Company's FG Property (the Property), located approximately 100 kilometers east of Williams Lake, in British Columbia.
Upon grant of the option, Canarc will issue 250,000 of its common shares (each, a Canarc Share) to Eureka and purchase 750,000 units of Eureka pursuant to a conjunctive private placement.
In order to earn an initial 51% interest in the Property, Canarc is required to incur aggregate exploration expenditures of $1,500,000 on the Property over a period of three years and make certain cash payments and issue an aggregate of 750,000 Canarc Shares over that period.
In order to earn an additional 24% interest in the Property, Canarc is required to incur aggregate exploration expenditures of $1,500,000 on the Property between the third anniversary and the fifth anniversary of the grant of the option and make certain cash payments and issue an aggregate of 1,500,000 Canarc Shares.
For further information about the Option Agreement, please see the Company's news releases dated August 25, 2016 and September 12, 2016, as found under its corporate profile on SEDAR at www.sedar.com.
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