20:03:09 EDT Thu 18 Apr 2024
Enter Symbol
or Name
USA
CA



Claim Post Resources Inc
Symbol CPS
Shares Issued 121,083,908
Close 2015-02-26 C$ 0.05
Market Cap C$ 6,054,195
Recent Sedar Documents

Claim Post arranges $2-million private placement

2015-02-26 20:09 ET - News Release

Mr. Charles Gryba reports

CLAIM POST RESOURCES INC. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Claim Post Resources Inc. intends to complete a new non-brokered private placement offering of a combination of up to 40 million common shares and flow-through common shares, with each flow-through share to be issued as a flow-through common share under the provisions of the Income Tax Act (Canada). The common shares will be offered at a price of five cents per share and the flow-through shares will be offered at a price of six cents per share. The total gross proceeds of the offering are up to $2-million.

The offering will be conducted by the company using the existing shareholder exemption as described in Multilateral CSA Notice 45-313, prospectus exemption for distributions to existing securityholders, as well as exemptions under the accredited investor exemption of National Instrument 45-106, prospectus and registration exemptions, and also other applicable exemptions available to the company.

Claim Post will make the offering available to all shareholders of the company as at Feb. 2, 2015, who are eligible to participate under the existing shareholder exemption and who will have notified the company by no later than 4:30 p.m. Eastern Time on March 30, 2015, of their intention to participate in the offering. Orders will be processed by the company on a first-come, first-served basis, such that it is possible that a subscription received from a shareholder may not be accepted by the company if the offering is oversubscribed. Any person who becomes a shareholder of Claim Post after the record date shall not be entitled to participate in the offering under the existing shareholder exemption.

The proceeds received from the offering will be used to carry out a minimum 2,000-metre drilling program toward updating a resource estimation of the Seymourville frac sand project in accordance with NI 43-101 rules, to complete design work for a processing facility, to complete API testwork and for general working capital purposes.

All securities issued will be subject to a four-month hold period from the date of closing. The offering is subject to the approval of the TSX Venture Exchange.

At closing of the offering, finders' fees of 7 per cent of the proceeds may be payable in cash and 7 per cent in finder warrants, which are exercisable at the price of five cents per share and expire 12 months from the date of closing of the offering.

Charles Gryba, chief executive officer of Claim Post, stated: "We value current shareholders and want them to participate in this placement. In recent weeks, the low oil prices have seriously affected all TSX-V junior companies; thus, this financing has to be done at market prices. Several good news items have occurred recently; first, natural frac sand consumption went up to 60 million tons in 2014, a 50-per-cent rise over 2013 (PropTester report, Feb. 23, 2015). Secondly is that the surplus in oil crude supply is decreasing, now less than 1.8 million barrels per day, as world demand is increasing (National Post, Feb. 26, 2015, article). Finally, RBC analysts predict a 15-per-cent-tonnage drop in frac sand tonnage in 2015, mainly in the fourth quarter, followed by a 20-per-cent year-on-year rise in 2016 (SLCA, Feb. 24, 2015, report). Our PEA targeted sand production date was June, 2017; this may still be achievable if the positive trends continue. The proceeds of this financing will be used to further derisk the Seymourville frac sand project."

We seek Safe Harbor.

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