TORONTO, June 17, 2014 (GLOBE NEWSWIRE) -- Claim Post Resources Inc. (TSX-V:CPS) (the "Company") reports that it has completed its previously announced private placement financing, as described in its news releases dated May 29, 2014, June 2, 2014 and June 11, 2014. The Company issued a total of 18,766,996 Units and 2,800,000 Flow-Through Units for total gross proceeds of $1,753,360 with each Unit consisting of one common share and one-half of one warrant and each Flow-Through Unit consisting of one flow-through common share and one-half of one warrant. Each whole warrant entitles the holder to purchase one common share at an exercise price of $0.12 per share for a period of 6 months from the date of issuance.
In connection with the closing of the financing, the Company paid total cash finder fees of $79,800 and issued a total of 973,875 finder warrants, with each finder warrant exercisable for one common share in the capital of the Company at the price of $0.12 per share and expiring 6 months from the date of closing of the Offering.
The proceeds received from the Offering are being used or will be used: (1) to make the $350,000 Gossan payment (this payment to Gossan has been made as of the date of this release); (2) to carry out an additional 1,000 meter drilling program towards completing a global resource estimation of the "Seymourville Frac Sand Project" in accordance with NI 43-101 rules (see April 29, 2014 Press Release filed on SEDAR, which highlighted a resource of 25 million tons of sand on 20% of the property; the independent, NI 43-101 Technical Report and Resource Estimate on the Seymourville Silica Sand Project, prepared by P & E Mining Consultants Inc. was filed on SEDAR on June 13, 2014); (3) to complete a scoping study on the project (Preliminary Economic Assessment or PEA), which will give Claim Post the ability to test market selling frac sand; and (4) for general working capital purposes.
The President of Claim Post Resources, Charles Gryba, stated: "We are now funded to complete the drilling program which should give us a reasonable global tonnage before the end of 2014. The SGS Lakefield metallurgical testwork is proceeding well and we should have a range of API Testwork plus a process flow sheet completed in the next 4 to 6 weeks. As soon as the SGS Testwork is complete we will proceed with preliminary engineering of the plant site and transload facility to de risk the scoping study."
All securities issued in connection with the financing will be subject to a statutory four (4) month hold period.
Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company is focused on becoming a leading provider of premium white silica sand proppant to oil operations in the Williston Basin (both the Canadian and U.S. sides of the Border), and to the natural gas plays in the Montney and Horn River basins along the Alberta – British Columbia border from its Seymourville Frac Sand Project, located 200 km northeast of Winnipeg, Manitoba. Claim Post also has mineral claims in the Timmins area for gold and base metal exploration. There are 118,019,160 common shares of the Company currently issued and outstanding.
Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
Neither 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 release.
CONTACT: Claim Post Resources Inc. Charles Gryba President and Director 416-801-6333 www.claimpostresources.com Claim Post Resources Inc. Peter Gryba Corporate Affairs 416-203-3776Source:Claim Post Resources Inc.