Claim Post closes $1.75-million private placement

Jun 17, 2014

CLAIM POST RESOURCES INC. ANNOUNCES COMPLETION OF NEW FINANCING

Claim Post Resources Inc. 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 2.8 million 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 12 cents per share for a period of six months from the date of issuance.

In connection with the closing of the financing, the company paid total cash finders’ fees of $79,800 and issued a total of 973,875 finders’ warrants, with each finder’s warrant exercisable for one common share in the capital of the company at the price of 12 cents per share and expiring six 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-metre drilling program toward completing a global resource estimation of the Seymourville frac sand project in accordance with National Instrument 43-101 rules (see April 29, 2014, press release filed on SEDAR, which highlighted a resource of 25 million tonnes of sand on 20 per cent 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 of 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 [Analytical Profile Index] testwork plus a process flow sheet completed in the next four to six weeks. As soon as the SGS testwork is complete, we will proceed with preliminary engineering of the plant site and transload facility to derisk the scoping study.”

All securities issued in connection with the financing will be subject to a statutory four-month hold period.

We seek Safe Harbor.

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