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Eastmain Resources Inc. Completes
$5M Private Placement Financing
Toronto, Ontario, December 7, 2010. Eastmain
Resources Inc. (TSX:ER) ("Eastmain") is pleased to announce
that it has completed its previously announced private placement for
1.82 million "flow through" common shares ("FT
Shares") at a price of $2.75 per FT Share, for aggregate gross
proceeds of $5 million. The placement, including the exercise of the
full over-allotment option, was fully subscribed.
Casimir Capital Ltd. and RBC Capital
Markets (the "Agents"), who acted as agents 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 the Agents to
subscribe for 0.1 million common shares of Eastmain, at a price of
$1.85. The warrants have a term of 12 months from the date of closing
of the placement.
The placement was completed at a 52% premium
to the last 20-day weighted average share price at market close on
December 5, 2010. The proceeds from this placement provide Eastmain
with total working capital of approximately $24 million. Proceeds from
the placement will be used to fund exploration of Eastmain's numerous
James Bay Quebec gold projects, including its 100%-owned Eau Claire and
Eastmain gold deposits. Two drills are currently operating at
Clearwater in the search for additional gold resources east and west of
the Eau Claire gold deposit. Thirty-five holes for a total of 7,750 metres have been completed to date this season.
Drilling will continue until mid-month and re-commence by mid-January.
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 $24 million in working capital and holds an
interest in 12 projects within the James Bay District, including the Eleonore 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.
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