Claim Post raises private placement to $1.79-million

Jun 11, 2014

CLAIM POST RESOURCES INC. ANNOUNCES FURTHER INCREASE OF NON-BROKERED PRIVATE PLACEMENT

Due to overwhelming interest, Claim Post Resources Inc. intends to increase the size of its recently announced non-brokered private placement offering. The Offering will now be for up to a total of 19,000,000 common share units (the “Units”) and up to a total of 3,000,000 flow-through units (the “Flow-Through Units”). The Units will be offered at a price of $0.08 per Unit with each Unit consisting of one common share of the Company and one-half of a warrant (each whole warrant a “Warrant”). Each Warrant is exercisable for one common share in the capital of the Company at a price of $0.12 per share for a six month period. The Flow-Through Units will be offered at a price of $0.09 per share with each Flow-Through Unit consisting of one flow-through common share and one-half of a Warrant. Each Warrant comprising the Flow-Through Unit is exercisable for one common share in the capital of the Company at a price of $0.12 per share for a six month period. The aggregate gross proceeds of the Offering will be now up to $1,790,000.

The proceeds received from the Offering will be used (1) make the $350,000 Gossan Resources payment, (2) to carry out a minimum 1,000 meter drilling program towards increasing the 25,000,000 tonne resource estimation of the “Seymourville Frac Sand Project” in accordance with NI 43-101 rules (April 29th, 2014 Press Release filed on SEDAR); (3) to complete a Scoping Study on the project (Preliminary Economic Assessment). which will give Claim Post the ability release project economics and test market frac sand; and (4) for general working capital purposes.

All securities issued will be subject to a four (4) 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, finder fees of 7% of the proceeds may be payable in cash, and finder warrants equal to 7% of the number of securities issued which are exercisable at the price of $0.12 per share and expiring 6 months from the date of closing of the Offering may be payable.

Charles Gryba, CEO of the Company, stated: “We are very pleased at the strong interest from investors in this financing and the confidence this expresses in the future of the Company. These funds will allow us more financial flexibility to move the frac sand project forward. Claim Post Board members and major shareholders are subscribing for approximately 60% of the offering.”

http://www.claimpostresources.com/news.php