Eastmain Resources Closes $6 Million Private Placement
TORONTO, ONTARIO--(Marketwired - May 11, 2016) -
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Eastmain Resources Inc. ("Eastmain" or the "Company") (TSX:ER) is pleased to announce that as of yesterday, it has completed the previously announced (April 8, 2016) Integra Gold Corp. private placement for total gross proceeds of $6,030,000.
Eastmain has issued 3.1 million flow-through common shares at $0.50 each for gross proceeds of $1,550,000 and 12.8 million units (the "Units"), at $0.35 each, for gross proceeds of $4,480,000. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant (a "Warrant") entitles the holder to acquire an additional common share, at a price of $0.50, for a period of 30 months from closing the private placements. All shares and Warrants are subject to a hold period which will expire on September 11, 2016.
As part of the financing agreement, Integra has the right to maintain its pro rata ownership interest in any subsequent financings of Eastmain or, at its option, to increase its ownership in such offerings to 15% of the outstanding common shares, subject to the right of Eastmain to limit Integra's participation in any one financing to 50% of the offering. Integra's rights under the Investor Rights Agreement will terminate upon Integra ceasing to maintain at least a 5% interest in the outstanding common shares of Eastmain.
About Eastmain Resources Inc. (TSX:ER)
Eastmain is a Canadian exploration company with 100% interest in the Eau Claire and Eastmain gold deposits, both of which are located within the James Bay District of Quebec. Eau Claire, the Company's core asset, has superior infrastructure within a favourable jurisdiction and is royalty free. Eastmain also holds a pipeline of exploration projects in this new Canadian mining district. In October 2015, Eastmain was presented with the "Discovery of the Year 2015" award by the Association de L'Exploration Minière du Québec ("AEMQ") for its contributions to the development of Quebec's mining exploration industry.
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or timing of future plans, and include, but not limited to, statements with respect to the potential success of the Company's future exploration and development strategies. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Eastmain, including, but not limited to the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, the availability of financing, timely completion of proposed studies and technical reports, and risks associated with the exploration, development and mining industry generally such as economic factors as they affect exploration, future commodity prices, changes in interest rates, safety and security, political, social or economic developments, environmental risks, insurance risks, capital expenditures, operating or technical difficulties in connection with development activities, personnel relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of Mineral Resources, contests over property title, and changes in project parameters as plans continue to be refined. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update such information, except as may be required by law.
Contact
Investor Contact:
Laurence (Laurie) Curtis
Chairman
1-289-242-7422
lwcurtis@icloud.com
Media Contact:
Heather MacDonald
647-725-2520 x 207
heather.macdonald@kaiserlachance.com