Claim Post Resources Inc. Announces Non-Brokered Private Placement
22 February 2013 - 3:00AM
Marketwired Canada
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Claim Post Resources Inc.
Charles Gryba
President and Director
416-801-6366
Claim Post Resources Inc.
Peter Gryba
Corporate Affairs
416-203-3776
www.claimpostresources.com
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