Toronto, Ontario, September 15, 2010. Eastmain Resources Inc. (TSX:ER) ("Eastmain") is pleased to announce that it has completed its previously announced private placement for 1.4 million "flow through" common shares ("FT Shares") at a price of $2.30 per FT Share, for aggregate gross proceeds of $3,220,000. The placement was fully subscribed, including the exercise of the full over-allotment option.
Casimir Capital L.P. ("Casimir"), who acted as agent in the offering, received a finder's fee equal to 6% of gross proceeds of the financing as well as non-transferable broker warrants entitling Casimir to subscribe, at a price of $1.60, for such number of common shares of Eastmain that are equal to 6% of the number of FT Shares that have been issued as a result of this financing. The warrants have a term of 24 months following the closing of the placement.
The placement was completed at a 75% premium to the last 10-day weighted average share price prior to the announcement of the private placement. The proceeds from this placement provide Eastmain with total working capital of approximately $20 million after closing. Proceeds from the placement will be used to fund exploration of Eastmain's numerous James Bay Qu�bec gold projects, including its 100%-owned Eau Claire and Eastmain gold deposits, and its �l�onore South joint venture, allowing Eastmain to increase its 2010-2011 exploration budget by 34%.
About Eastmain Resources Inc. (TSX:ER)
Eastmain is a Canadian gold exploration company with 100% interest in the Eau Claire and Eastmain gold deposits. Eastmain has $20 million in working capital and holds an interest in 12 projects within the James Bay District, including the �l�onore South property, where a gold discovery has been found in a similar geologic setting to Goldcorp's Roberto deposit.
For further information please contact Eastmain Resources Inc.: Dr. Donald J. Robinson, President or Catherine Butella, Exploration Manager at (519) 940-4870, fax (519) 940-4871, by e-mail: info@eastmain.com or visit our website at www.eastmain.com.