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VANCOUVER, June 20, 2017 /CNW/ - Eros Resources
Corp. (TSX.V: ERC) ("Eros" or the
"Company") is pleased to announce that it has completed its
previously announced non-brokered private placement (the
"Private Placement") for aggregate gross proceeds of
$1,037,880. At the closing yesterday,
a total of 6,486,750 units were issued, each at a subscription
price of $0.16 per unit, with each
unit consisting of one common share of the Company and one-half
common share purchase warrant. Each whole warrant entitles
the holder thereof to acquire one common share at a price of
$0.25 per common share for a
period of 24 months from the date of issuance or at a price of
$0.30 per common share for an
additional 12-month period. Certain directors, officers and
insiders of the Company have participated in the Private Placement
and collectively have acquired 2,575,000 common shares under the
Private Placement.
Proceeds from the Private Placement will be used for general
corporate purposes. The Private Placement is subject to TSX Venture
Exchange final acceptance. All of the common shares and warrants
issued in connection with this financing are subject to a
four-month hold period expiring October 20,
2017, in accordance with applicable securities laws.
In addition, Eros is pleased to advise that its partner and
project operator, Westcore Energy Ltd. ("Westcore")
announced on Friday, June 16, 2017
that it had completed the initial drilling operations on its three
well program at Flaxcombe,
Saskatchewan. The three well program commenced on
June 1, 2017 and drilling was
completed on June 14, 2017. The
program was designed based on the re-interpretation of a 3D seismic
survey that Westcore acquired with the property.
Eros holds a 90% beneficial working interest in the wells until
it recovers its initial capital investment totalling $1.6 million and a 50% interest thereafter.
Additionally, Eros has the right to participate in the next two
programs under the same terms.
Westcore reported that all three wells successfully encountered
the Lower Manville Success Sand Formation, with multiple oil
bearing sands in each well bore. The Upper Success Sand Formation,
which is the primary target, shows total oil bearing formation
thicknesses of 5 meters, 9 meters and 11 meters respectively. The
Lower Success sand formation, which is a secondary target, shows a
total oil bearing formation thickness of 8 meters in each well.
Westcore will be reviewing the results with its completions team,
with a view to bringing the wells on production in the most
efficient manner possible.
We seek Safe Harbour
About Eros
Eros Resources Corp. is a well-financed
Canadian public company focused on the exploration and development
of resource projects in North
America. Eros also holds an investment portfolio which
includes 48 million shares of Skeena Resources Ltd., 4.0 million
shares of Westcore Energy Limited 6.75 million shares of Bullfrog
Gold Corporation and a number of other equity positions in junior
exploration companies.
On behalf of the Board of Directors of
Eros Resources Corp.,
Ron Stewart
President & CEO
Cautionary note regarding forward-looking
statements
Certain statements made and information
contained herein may constitute "forward looking information" and
"forward looking statements" within the meaning of applicable
Canadian and United States
securities legislation, including, among other things, this press
release includes references to discovered and undiscovered oil and
natural gas resources and Westcore's future drill
program. There is no certainty that any portion of the
resources will be discovered. If discovered, there is no certainty
that it will be commercially viable to produce any portion of the
resource. There is no certainty the drill program will be fully or
partially completed. Forward-looking information involves known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those expressed
or implied by such forward-looking information, including the
availability of adequate and secure sources of funding to complete,
equip and bring the new wells on-stream, prevailing commodity
prices, the receipt of regulatory approvals, environmental risks
and the performance of Westcore personnel. While the Company
considers its assumptions to be reasonable as of the date hereof,
forward-looking statements and information are not guarantees of
future performance and readers should not place undue importance on
such statements as actual events and results may differ materially
from those described herein. The Company does not undertake to
update any forward-looking statements or information except as may
be required by applicable securities laws.
Neither TSX Venture Exchange nor the
Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this release.
SOURCE Eros Resources Corp.