Usha Resources Closes Third Tranche of Oversubscribed Non-Brokered Private Placement at Premium to Market Price, Terminates Share Exchange Agreement

Rhea-AI Summary

Usha Resources Ltd. (TSX.V:USHA, OTCQB:USHAF) has successfully closed the third tranche of its oversubscribed non-brokered private placement, raising $430,500 from 1,435,000 units at $0.30 each. This brings total gross proceeds from all tranches to $1,541,000. Each unit consists of one common share and half a warrant, with full warrants priced at $0.45 for two years. Additionally, the company has terminated its acquisition of 1236598 B.C. Ltd., focusing on its current projects, including the Jackpot Lake Lithium Brine Project.

Positive

• Raised total gross proceeds of $1,541,000 from oversubscribed private placement.
• Closes third tranche at $0.30 per unit, indicating market support.
• Focus on existing projects may enhance shareholder value.

Negative

• Termination of acquisition may indicate challenges in expansion.
• Reliance on private placement may suggest limited operational cash flow.

VANCOUVER, BC / ACCESSWIRE / May 18, 2022 / Usha Resources Ltd. ("USHA" or the "Company") (TSX.V:USHA) (OTCQB:USHAF) (FSE:JO0) is pleased to report that, further to its previous news releases (see news releases dated April 4, 2022 and May 16, 2022) and subject to the approval of the TSX Venture Exchange (the "Exchange"), it has closed the third tranche of its oversubscribed non-brokered private placement (the "Private Placement") issuing an additional 1,435,000 units (each a "Unit") at a price of $0.30 per Unit for total gross proceeds of $430,500. In total, USHA has raised gross proceeds of $1,541,000 in all three tranches.

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 $0.45 per Share for a period of 2 years from the date of closing (the "Expiry Date").

The Company paid finders' fees totaling $34,440 cash and 114,800 non-transferable finder warrants (the "Finder Warrants") to Canaccord Genuity Corp. in accordance with applicable securities laws. The Finder's Warrants are exercisable on the same terms as the Warrants issued in the Private Placement.

All securities issued in the third 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 September 18, 2022.

Additionally, the Company wishes to correct the disclosure in the news release issued on May 16, 2022 and confirms that the Warrants issued in the second tranche closing of the Private Placement were half-Warrants.

The Company also announces that further to the Company's news releases dated August 12, 2021 and December 21, 2021, the Company has decided not to proceed with the acquisition of 1236598 B.C. Ltd. ("1236") and the Share Exchange Agreement dated August 11, 2021 among the Company, 1236 and the shareholders of 1236 has been terminated. The termination was completed in the best interests of shareholders as the Company believes it is better to focus on its existing portfolio of projects including the Jackpot Lake Lithium Brine Project and the Formation Metals spinout.

About Usha Resources Ltd.

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.

USHA RESOURCES LTD.

"Deepak Varshney" CEO and Director

For more 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.

SOURCE: Usha Resources Ltd.

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FAQ

What is the significance of Usha Resources' private placement on May 18, 2022?

The private placement raised $1,541,000, showing strong market interest.

How many units did Usha Resources issue in the third tranche?

Usha Resources issued 1,435,000 units in the third tranche.

What was the price per unit for the Usha Resources private placement?

Each unit was priced at $0.30 during the private placement.

What does the termination of the Share Exchange Agreement mean for USHAF?

It indicates a shift in focus towards existing projects rather than new acquisitions.

What are the terms of the warrants issued in the private placement?

Warrants are exercisable at $0.45 per share for two years.