Usha Resources Closes Final Tranche of Oversubscribed Non-Brokered Private Placement Totalling $2,895,401
Usha Resources Closes Final Tranche of Oversubscribed Non-Brokered
Private Placement Totalling $2,895,401
VANCOUVER, BC
,
June 15, 2022
/CNW/ -
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
$0.30
per Unit for total gross proceeds of
$1,353,602
. In total, USHA has raised gross proceeds of
$2,895,401
in all
four tranches.
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
$0.45
per Share for a period of 2 years from the date of closing (the "
Expiry Date
").
In connection with the final tranche of the Private Placement, the Company paid finders' fees of
$7,920
cash and 26,400 non-transferable finder warrants (the
"
Finder Warrants
") to PI Financial Corp.,
$1,800
cash and 6,000 Finder's Warrants to Leede Jones Gable Inc., and
$4,208.02
cash and 14,027 Finder's
Warrants to Research Capital Corporation. The Finder's Warrants are exercisable on the same terms as the Warrants issued in the Private Placement and were
issued in accordance with applicable securities laws and Exchange Policy.
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
).
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 further information: please call
Tyler Muir
, Investor Relations, at 1-888-772-2452, email
, 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.
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%SEDAR: 00035874E
CO: Usha Resources Ltd.
CNW 07:00e 15-JUN-22