TORONTO, ONTARIO -- (Marketwire) -- 02/21/13 -- Claim Post Resources Inc. (TSX VENTURE: CPS) (the "Company") announces that it intends to complete a non-brokered private placement offering (the "Offering") of up to 35,000,000 units (the "Units") at a price of $0.10 per Unit for gross proceeds of up to $3,500,000. Each Unit is comprised of one (1) common share and one (1) common share purchase warrant (a "Warrant"). Each Warrant is exercisable at an exercise price of $0.15 per share for a period of three (3) years from the date of issuance.
The proceeds received from the Offering will be used (i) to fund the acquisition of a silica sand quarry project located near Seymourville, 200km NE of Winnipeg, Manitoba (Canada) (see press release of August 27, 2012); (ii) to carry out a 3000 m drilling program towards completing a resource definition in accordance with NI 43-101; (iii) to complete marketing and engineering studies on the project; (iv) for the down payment on industrial land in Winnipeg for a frac sand loading terminal (v) 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.
The Seymourville Silica Sand deposit was discovered in 1977 and was drilled by Manitoba government geologists in 1981 and again in 1989 indicating a potential resource of 45 million tons of high silica sand (Manitoba Energy and Mines website) of which an estimated 70% is on the Char Crete leases. The deposit is hosted within a 25m high hill composed mainly of Lake Winnipeg Formation which is the on-shore extension of the Historical Black Island silica deposit. The 99% pure silica sand was evaluated to feasibility in the 1980's to make 500 tons per day of plate glass (Manitoba Open File Report OF 96-4); the current market is as frac sand for the Western Canadian oil and gas markets. The historical estimates are not current and do not meet the standards prescribed by NI 43-101. The Company has not completed the work necessary to have the historical estimate verified by a QP. The Company is not treating the estimate as a current NI 43-101 defined resource and the historical estimate should not be relied upon.
The President of Claim Post Resources, Charles Gryba, stated: "We are concentrating on de-risking the Seymourville frac sand project. On completion of the next phase of financing; our first priority will be to start a drilling program and the API - ISO testwork towards completing a NI 43-101 report. Obtaining an option on the Winnipeg industrial property is suitable for setting up a frac sand terminal for transport via rail and is already permitted for a 24 hour per day operation, simplifying the independent economic studies."
Claim Post's frac sand deposit is approximately 1,000 km closer to the Canadian market in comparison to Wisconsin deposits where 75 percent of the US frac sand is mined and processed. Transportation savings is one key component to making any industrial mineral profitable and this is especially true in the cost competitive natural frac sand market.
The Seymourville deposit has 20 - 40 mesh and 40 - 70 mesh natural sand used for the fracking in the Bakken oil formations located in Southern Manitoba and Saskatchewan and also 40 - 70 mesh and 100 mesh sizes suitable for natural gas fracking in the world class Montney, Horn River and Laird River basins.
Horizontal drilling and fracking in the US and Western Canada has been very successful and the tonnage of frac sand used may continue to grow as LNG plants are built for export of natural gas to Asian markets and other Canadian shale deposits are re-drilled for light oil production. Canadian frac sand deposits are very rare as recent glaciations has either destroyed the deposit or mixed in other non API spec sand.
Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company currently holds a 100% interest in the mineral rights to about 1145 staked claim units and 63 patented claims (approx. 200 km sq. or 72 sq. miles), wholly within the city limits of Timmins, Ontario. The Company also has 51% ownership rights in 9 quarry leases near Seymourville, Manitoba. There are 45,788,831 common shares of the Company issued and outstanding.
Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
Neither 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 release.
Claim Post Resources Inc.
President and Director
Claim Post Resources Inc.
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