Claim Post boosts private placement to $2.5-million

Oct 8, 2013

CLAIM POST RESOURCES INC. ANNOUNCES AMENDED PRIVATE PLACEMENT

Claim Post Resources Inc. is amending its non-brokered private placement offering previously announced on July 3, 2013, and Aug. 28, 2013. The company has increased its offering to up to $2.5-million through the issuance of a combination of flow-through units (FT units) at a price of six cents per FT unit and non-flow-through units at a price of five cents per unit. Each FT unit is composed of one flow-through common share in the capital of the company and one common share purchase warrant. Each full warrant comprising the FT units will entitle the holder to acquire one additional common share at an exercise price of 10 cents per share for a period of 36 months from the date of issuance. Each (non-flow-through) unit is composed of one common share in the capital of the company and one common share purchase warrant. Each warrant comprising the units will entitle the holder to acquire one additional common share at an exercise price of 10 cents per share for a period of 36 months from the date of the issuance.

The company completed an initial closing of 3.5 million units for gross proceeds of $175,000 on Sept. 25, 2013. The company anticipates the final closing of the offering will take place in early November.

The proceeds received from the offering will be used to carry out a minimum 1,000-metre drilling program toward completing a resource estimation of the Seymourville frac sand project in accordance with National Instrument 43-101 rules; to complete a scoping study on the project (preliminary economic assessment), which will give Claim Post the ability to test market forward selling frac sand; and for general working capital purposes.

All shares 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 finder fees of 7 per cent of the proceeds may be payable in cash and 7-per-cent finder warrants, which are exercisable for one common share of the corporation at the price of 10 cents per share and expire 36 months from the date of closing of the offering.

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