Usha Resources Closes Final Tranche of Oversubscribed Non-Brokered Private Placement Totalling $2,895,401
Usha Resources Ltd. (TSXV: USHA, OTCQB: USHAF) has successfully closed the final tranche of its non-brokered private placement, raising an additional $1,353,602 and totaling $2,895,401 across four tranches. Each unit consists of one common share and one-half warrant, exercisable at $0.45 for two years. The funds will support aggressive exploration of the Jackpot Lake Lithium project and the Lost Basin Gold-Copper project, along with a potential spinout of its Nicobat Nickel Project. CEO Deepak Varshney emphasized strong demand and confidence in the company’s projects.
- Raised total gross proceeds of $2,895,401 from the private placement.
- Strong demand indicated by an oversubscribed private placement.
- Funding will facilitate major exploration efforts at Jackpot Lake and Lost Basin projects.
- Potential spinout of Nicobat Nickel Project could enhance shareholder value.
- None.
VANCOUVER, BC, June 15, 2022 /PRNewswire/ - Usha Resources Ltd. ("USHA" or the "Company") (TSXV: USHA) (OTCQB: USHAF) (FSE: JO0) is pleased to report that, further to its previous news releases (see news releases dated April 4, 2022, May 16, 2022 and May 18, 2022) and subject to the approval of the TSX Venture Exchange (the "Exchange"), it has closed its final tranche of its non-brokered private placement (the "Private Placement") issuing an additional 4,512,007 units (each a "Unit") at a price of
Deepak Varshney, CEO of Usha Resources stated: "Given the current market conditions, completion of this oversubscribed placement speaks to the strong demand and growing confidence in our team, our Lithium, Gold-Copper and Nickel projects and future vision for where we intend to take this Company. We are very pleased to welcome many new subscribers in this financing, including our latest institutional investor, and thank our existing shareholders who participated for their on-going support. With a well-funded treasury, USHA is positioned to execute at each of our projects and we look forward to a busy and productive field season."
Each Unit issued consists of one common share (a "Share") in the capital of the Company and one-half of one transferable Share purchase warrant (each whole warrant, a "Warrant") with each whole Warrant exercisable at
In connection with the final tranche of the Private Placement, the Company paid finders' fees of
All securities issued in the fourth tranche of the Private Placement are subject to the Exchange hold period, plus a hold period of four months and one day following the closing dates of the Private Placement expiring on October 15, 2022.
The proceeds raised under the Private Placement will be used for working capital and general corporate purposes including:
- Aggressive exploration at the Jackpot Lake Lithium Brine project, where the Company intends on completing its maiden drilling program with the goal of completing a 43-101 resource estimate by Q4 of 2022 (https://bit.ly/3tD9ndz);
- Exploration at the Lost Basin Gold-Copper project, where the Company intends on completing its maiden drilling program following more than a year of target development and generation (https://bit.ly/39mFN59); and
- Subject to a number of conditions, completion of the spinout of its Nicobat Nickel Project into its wholly-owned subsidiary, Formation Metals Corporation ("FMC"), giving shareholders a "
20% share dividend" of one (1) share of FMC with respect to every five (5) shares of USHA owned on the share distribution record date (https://bit.ly/3b3cRjd).
Usha Resources Ltd. is a North American mineral acquisition and exploration company focused on the development of quality battery and precious metal properties that are drill-ready with high-upside and expansion potential. Based in Vancouver, BC, Usha's portfolio of strategic properties provides target-rich diversification and consist of Jackpot Lake, a lithium project in Nevada; Nicobat, a nickel‑copper‑cobalt project in Ontario; and Lost Basin, a gold-copper project in Arizona. Usha trades on the TSX Venture Exchange under the symbol USHA, the OTCQB Exchange under the symbol USHAF and the Frankfurt Stock Exchange under the symbol JO0.
"Deepak Varshney" CEO and Director
For further information: please call Tyler Muir, Investor Relations, at 1-888-772-2452, email tmuir@usharesources.com, or visit www.usharesources.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
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SOURCE Usha Resources Ltd.
FAQ
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