VANCOUVER, June 8, 2016 /CNW/ - Eureka Resources Inc. ("Eureka" or the "Company") (TSXV: EUK) is pleased to report that the TSX Venture Exchange (the "TSXV") has accepted for filing a letter agreement dated January 20, 2016 and an addendum to the letter agreement dated May 4, 2016 between the Eureka and Nevada Sunrise Gold Corporation ("Nevada Sunrise") (TSXV: NEV) whereby the Eureka can acquire a 50% interest in the Gemini Lithium Project ("Gemini") which comprises 247 placer mining claims totalling 4,940 acres (2,000 hectares) in the western Lida Valley, Nevada.
Gemini hosts two deep, sub-basins that have the potential for lithium-bearing brines similar to the proven lithium brine deposits located in the Clayton Valley. Lithium occurs in economic quantities within brines in the Clayton Valley where the only producing lithium mine in North America is located. Gemini is situated in a similar geologic environment and is 40 kilometres southeast of the Clayton Valley.
The Company has paid CAD$ 96,794 being its 50% share of the acquisition costs, and geophysical and geological costs incurred to date on Gemini. In addition, Eureka has issued 300,000 common shares to Nevada Sunrise according to the terms of the letter agreement, thereby acquiring its 50% interest in Gemini.
Gemini Lithium Project
In March 2016, Eureka and Nevada Sunrise commissioned SJ Geophysics Ltd. to perform a follow-up time domain electromagnetic ("TDEM") survey to further define conductive strata present within the two sub-basins at Gemini, first detected in a TDEM survey carried out in February 2016. The processing and modelling of the combined TDEM data has been completed and 10 drill site locations have been chosen for a late summer drilling program to explore Gemini sub-basins for lithium-bearing brines. A permit application for up to 10 drilling sites has been submitted to the United States Bureau of Land Management.
Annual General Meeting
Eureka announced today that its shareholders voted in favour of all items of business brought before them at the Company's Annual General Meeting (the "AGM") held on June 3, 2016, in Vancouver, BC.
At the AGM, shareholders voted in favour of all nominations to the Board of Directors (the "Board"), with Michael Sweatman, Warren Stanyer, John Kerr and Kristian Whitehead each re-elected to the Board. Subsequent to the AGM, the Board re-appointed Michael Sweatman as President and Chief Executive Officer, Kristian Whitehead as Vice President, Exploration, Brent Petterson, CA, CGA, as Chief Financial Officer, and Christina Boddy as Corporate Secretary.
Shareholders also re-appointed Davidson and Co. LLP, Chartered Accountants, as the auditor of the Company and approved the Company's stock option plan. The Board also confirmed nominations for the Audit and Compensation Committees, and has delegated Corporate Governance and Nominations Committees duties to the Board as a whole.
John R. Kerr, P.Eng., is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and approved the technical information described in this news release.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's proposed financings, objectives, goals or future exploration plans at the Gemini Project, and the business and operations of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Eureka Resources, Inc.
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For further information: Further information on Eureka can be found on the Company's website at www.eurekaresourcesinc.com and at www.sedar.com, or by contacting Michael Sweatman, President and CEO or Bob Ferguson by email at [email protected] or by telephone at (604) 449-2273.