TORONTO, ONTARIO -- (Marketwire) -- 03/27/13 -- Claim Post Resources Inc. (TSX VENTURE: CPS) (the "Company") announces that it has acquired 75 percent of the Seymourville Silica Sand Deposit in Manitoba, by making payment in the amount of $150,000 to Char Crete Ltd.
Claim Post Resources is continuing its $3,500,000 financing as reported in Press Release dated February 21, 2013. The non-brokered private placement offering (the "Offering") is for 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 (1) 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); (2) to carry out a 3,000 meter drilling program towards completing a resource estimation in accordance with NI 43-101; (3) to complete a marketing study and a scoping study on the project (Preliminary Economic Assessment); and (4) for general working capital purposes.
Claim Post completed an initial closing of the Offering for gross proceeds of $250,000 which will be used for advancing the Char Crete Ltd. purchase and general working capital. All securities issued are subject to a four (4) month hold period from the date of the closing.
The President of Claim Post Resources, Charles Gryba, stated: "We are concentrating on de-risking the Seymourville frac sand project. Our primary aim is to attain 100% ownership of the Char Crete sand leases and advance the project to cash flow and profitability as soon as possible. This will be preceded by a drilling program and the API - ISO frac sand test work towards completing a NI 43-101 report and Pre-feasibility Study. We now have 75% ownership thus the next step is to go to 100% ownership."
The Seymourville Silica Sand deposit was discovered in 1977 and was drilled by Manitoba government geologists in 1981 and again in 1989 indicating an estimated resource of 45 million tons of high silica sand (Manitoba Open File Report OF 96-4) of which potentially about 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; 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.
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 now also has a 75% ownership right in 9 quarry leases near Seymourville, Manitoba. There are 48,288,831 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.
Most Popular Stories
- Top Hispanic Tech Companies Push for the Top
- 5 Notable Hispanic Technology Executives
- Russia, Crimea Discuss Referendum
- Taco Bell Rings Up Breakfast Menu
- California Establishes Center for Coffee Study
- China Urges Malaysia Flight Emergency Response
- Visa, MasterCard Team Up to Focus on Payment Security
- For Obama, a Last Stab at Improving Ties with Capitol Hill
- Sunday Starts Daylight Saving Time
- 'Holy grail of guitars' OM-45 Deluxe Available in in NY Auction