Claim Post Resources Inc.

Claim Post Resources Inc.

February 26, 2015 20:00 ET

Claim Post Resources Inc. Announces Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwired - Feb. 26, 2015) - Claim Post Resources Inc. (TSX VENTURE:CPS) ("Claim Post" or the "Company") is pleased to announce that it intends to complete a new non-brokered private placement offering (the "Offering") of a combination of up to 40,000,000 common shares (the "Common Shares"), and flow-through common shares (the "Flow-Through Shares"), with each flow-through share to be issued as a "flow-through common share" under the provisions of the Income Tax Act (Canada). The Common Shares will be offered at a price of $0.05 per share and the Flow-Through Shares will be offered at a price of $0.06 per share. The aggregate gross proceeds of the Offering are up to $2,000,000.

The Offering will be conducted by the Company utilizing the "existing shareholder exemption" as described in Multilateral CSA Notice 45-313 - Prospectus Exemption for Distributions to Existing Security Holders (the "Existing Shareholder Exemption"), as well as exemptions under the "accredited investor" exemption of National Instrument 45-106 - Prospectus and Registration Exemptions ("NI 45-106"), and also other applicable exemptions available to the Company.

Claim Post will make the offering available to all shareholders of the Company as at February 2nd, 2015 (the "Record Date") who are eligible to participate under the Existing Shareholder Exemption and who will have notified the Company by no later than 4:30 PM (Eastern time) on March 30th, 2015 of their intention to participate in the Offering. Orders will be processed by the Company on a first come, first served basis such that it is possible that a subscription received from a shareholder may not be accepted by the Company if the Offering is over subscribed. Any person who becomes a shareholder of Claim Post after the Record Date shall not be entitled to participate in the Offering under the Existing Shareholder Exemption.

The proceeds received from the Offering will be used (1) to carry out a minimum 2,000 meter drilling program towards updating a resource estimation of the "Seymourville Frac Sand Project" in accordance with NI 43-101 rules; (2) to complete design work for a Processing Facility; (4) to complete API Testwork; and (5) 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.

At closing of the Offering finder's fees of 7% of the proceeds may be payable in cash, and 7% finder warrants which are exercisable at the price of $0.05 per share and expire 12 months from the date of closing of the Offering.

Charles Gryba, CEO of Claim Post, stated: "We value current shareholders and want them to participate in this placement. In recent weeks the low oil prices have seriously affected all TSX-V Junior companies thus this financing has to be done at market prices. Several good news items have occurred recently; first, natural frac sand consumption went up to 60 million tons in 2014, a 50% rise over 2013 (PropTester Report February 23, 2015). Secondly is that the surplus in oil crude supply is decreasing; now less than 1.8 million barrels per day as world demand is increasing. (National Post Feb. 26th article). Finally, RBC analysts predict a 15% tonnage drop in frac sand tonnage in 2015, mainly in the Q4, followed by a 20% year on year rise in 2016 (SLCA, Feb. 24, 2015 report). Our PEA targeted sand production date was June 2017, this may still be achievable if the positive trends continue. The proceeds of this financing will be used to further de-risk the Seymourville Frac Sand Project."

Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company is focused on becoming a leading provider of premium white silica sand proppant to oil operations in the Williston Basin (both the Canadian and U.S. sides of the Border), and to the oil and natural gas plays in the Western Canadian Sedimentary Basin from its Seymourville Frac Sand Project, located 200 km northeast of Winnipeg, Manitoba. Claim Post also has mineral claims in the Timmins area for gold and base metal exploration. There are 121,083,908 common shares of the Company currently issued and outstanding.

Qualified Person

Charles Gryba P.Eng is the qualified person for this press release.

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.

Contact Information

  • Claim Post Resources Inc.
    Charles Gryba
    President and Director

    Claim Post Resources Inc.
    Peter Gryba
    Corporate Affairs