Eureka Lithium Corp Announces LIFE Financing

Rhea-AI Summary

Eureka Lithium Corp (CSE: ERKA) (OTCQB: UREKF) announces a non-brokered private placement LIFE financing of up to 8,333,333 units at $0.15 per unit, aiming to raise up to $1,250,000. Each unit includes one common share and one warrant, exercisable at $0.205 for 24 months. The offering is expected to close around August 31, 2024, subject to regulatory approvals. Proceeds will be used to advance the company's Quebec mineral exploration assets and for general corporate purposes. The offering will be available to Canadian residents (except Quebec) under the listed issuer financing exemption, with no resale restrictions for Canadian subscribers. An offering document dated August 14, 2024, is available on SEDAR+ and the company's website.

Positive

• Potential to raise up to $1,250,000 in capital
• Proceeds to be used for advancing Quebec mineral exploration assets
• No resale restrictions for Canadian subscribers under LIFE Exemption

Negative

• Potential dilution of existing shareholders due to new share issuance
• Uncertainty in closing the full amount of the offering

Vancouver, British Columbia--(Newsfile Corp. - August 14, 2024) - Eureka Lithium Corp. (CSE: ERKA) (OTCQB: UREKF) (FSE: S580) ("Eureka Lithium" or "Eureka" or the "Company") announces that it intends to complete a non-brokered private placement financing LIFE financing (the "Offering") of up to 8,333,333 units of the Company ("Units") at a price of $0.15 per Unit for aggregate gross proceeds of up to $1,250,000.

Each Unit shall consist of one (1) common share in the capital of the Company ("Share") and (1) Share purchase warrant ("Warrant"), with each Warrant entitling the holder to purchase a Share at an exercise price of $0.205 for a period of 24 months from the date of issuance.

Closing of the Offering is anticipated to occur on or about the week of August 31, 2024. Closing is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals. The net proceeds of the Offering are intended to be used to advance the Company's Quebec mineral exploration assets and for general corporate purposes. Finders' fees may be paid to eligible arm's length persons with respect to certain subscriptions accepted by the Company.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"), the Units issuable under the Offering will be offered for sale to purchasers in of the provinces of Canada (except Quebec) pursuant to the listed issuer financing exemption under Part 5A.2 of NI 45-106 (the "LIFE Exemption"). Pursuant to NI 45-106, the securities issued to Canadian resident subscribers under the Offering will not be subject to resale restrictions..

There is an offering document dated August 14, 2024 related to the Offering that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.eurekalithiumcorp.com. Prospective investors should read this offering document before making an investment decision.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any U.S. state securities laws, and may not be offered or sold in the United States absent registration or available exemptions from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States, or in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Eureka Lithium Corp.

Eureka Lithium is the largest lithium-focused landowner in the northern third of Quebec, known as the Nunavik region, with 100% ownership of three projects comprising 1,408 sq. km in the emerging Raglan West, Raglan South and New Leaf Lithium Camps. These claims were acquired from legendary prospector Shawn Ryan and are located in a region that hosts two operating nickel mines with deep-sea port access.

For more information please contact:

David Bowen
Chief Executive Officer
Email: info@eurekalithiumcorp.com

Cautionary Statement

Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, such as statements regarding the completion of, and use of proceeds from, the Offering, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements reflect management's expectations and are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company believes that the expectations reflected in the forward-looking statements contained in this news release are reasonable, but no assurance can be given that these expectations will prove to be correct. The Company undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.

The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved the contents of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220019

FAQ

What is the price per unit in Eureka Lithium's LIFE financing offering?

Eureka Lithium Corp (UREKF) is offering units at a price of $0.15 per unit in its LIFE financing.

How much capital is Eureka Lithium aiming to raise through this offering?

Eureka Lithium Corp (UREKF) aims to raise up to $1,250,000 through this non-brokered private placement LIFE financing.

What is the exercise price and duration of the warrants in Eureka Lithium's offering?

In Eureka Lithium's (UREKF) offering, each warrant allows the holder to purchase a share at an exercise price of $0.205 for a period of 24 months from the date of issuance.

When is the expected closing date for Eureka Lithium's LIFE financing?

The closing of Eureka Lithium's (UREKF) LIFE financing is anticipated to occur on or about the week of August 31, 2024.

What will Eureka Lithium use the proceeds from the LIFE financing for?

Eureka Lithium (UREKF) intends to use the net proceeds to advance its Quebec mineral exploration assets and for general corporate purposes.