August 22, 2012
Eureka Resources and Teslin River amend Frasergold option agreement
VANCOUVER, B.C. - Eureka Resources Inc. (TSX-V: EUK) (“Eureka”) is pleased to announce that it has completed an agreement with Teslin River Resources Corp. (TSX-V: TLR) (“Teslin”) to amend the Frasergold project Option Agreement originally executed on November 21, 2011, and subsequently amended on April 25, 2012.
The Option Agreement, as revised on April 25, 2012, required property expenditures of CDN $1,206,678.31 be incurred by Teslin by December 31, 2012 with a further CDN $1,100,000 incurred by December 31, 2013 and a further CDN $1,100,000 by December 31, 2014.
As a result of reduced investor confidence in the natural resource sector, which has made financing junior resource companies challenging throughout 2012, Teslin has had to recalibrate its exploration plans in line with the realities dictated by the adverse current market conditions.
As part of this realignment of expectations, Teslin entered into discussions with Eureka, the owner of the Frasergold property, located 100 kilometres east of Williams Lake in the Cariboo area of central B.C., to advise them of the uncertain market conditions and specifically the ability to fund ongoing exploration activities.
Following negotiations, the parties agreed on August 20, 2012 to amend the terms of the Option Agreement. The property exploration program of CDN $1,206,678.31 scheduled to be completed by December 31, 2012, has been 100% deferred to December 31, 2013. The following two years of property expenditures of CDN $1,100,000 for each year have also been deferred from December 31, 2013 and 2014 to December 31, 2014 and 2015 respectively.
As a consequence of rescheduling these property payments, Teslin will pay forthwith CDN $25,000 of the CDN $50,000 payment scheduled by December 31, 2012 to Eureka and the balance by December 15 2012 for this accommodation.
John J. O’Neill, President and CEO of Eureka, said the company was pleased to accommodate Teslin and adopt the new schedule. “We are confident that we have all the right pieces in place to go forward with this project,” Mr. O’Neill said.About Eureka Resources Inc.
Since its incorporation in 1981, Eureka Resources Inc. has focused on the exploration and development of natural resource properties in order to create wealth for investors. With successful B.C. entrepreneur John J. O’Neill at the helm, Eureka has long been a steady and trustworthy presence on the province’s mineral-exploration scene. In addition to Eureka’s fostering of the Frasergold claim, the company holds the rights to the Lottie Lake copper claim, which is also in central British Columbia. Shares in Eureka Resources Inc. trade on the Venture Exchange of the Toronto Stock Exchange.
For further information please visit www.eurekaresourcesinc.com
or contact John J. O’Neill, President & CEO, 604.608.6154
You can view the Next News item:December 16th, 2013, Eureka accepts Teslin River's notification of termination of Frasergold Option Agreement
You can view the Previous News item:June 14th, 2012, Teslin River Resources Corp. Receives Multi-Year Exploration Permit for its Frasergold Project in British Columbia
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