Usha Resources Obtains Final Court Order Approving the Spin-Out of Formation Metals Inc. Drilling at Jackpot Lake Lithium Brine Project Set to Resume Post-Holidays
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Usha Resources Obtains Final Court Order Approving the Spin-Out of Formation Metals Inc.
Drilling at Jackpot Lake Lithium Brine Project Set to Resume Post-Holidays
Vancouver, British Columbia / January 10, 2023 – Usha Resources Ltd. (“USHA” or the “Company”)
(TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American mineral acquisition and exploration
company focused on the development of drill-ready battery and p recious metal projects, is pleased to
announce that it has obtained the final order from the Supreme Court of British Columbia approving the
previously announced proposed spin-out of the Company’s wholly owned-subsidiary, Formation Metals
Inc. (“Formation Metals” or “FMI”), through a plan of arrangement (“ Arrangement”) between USHA
and FMI. The Company will proceed with completing closing condi tions of the Arrangement, including
seeking final approval of the Arrangement by the TSX Venture Exchange (the “TSXV”). The Arrangement
cannot be completed until these conditions have been met.
Upon completion of the Arrangement and the share exchange pursu ant to the Arrangement, each USHA
Shareholder will receive one (1) common share of FMI with respe ct to every five (5) common shares of
USHA held on the Share Distribution Record Date (the “Share Distribution Record Date”). For example,
upon completion of the Arrangement, for each 10,000 common shar es of USHA owned on the Share
Distribution Record Date, the USHA Shareholder will own 2,000 c ommon shares of FMI. USHA
Shareholders will continue to own the same number of USHA commo n shares as they did on the Share
Distribution Record Date.
FMI will then hold the Company’s interest in the Nicobat Nickel Project and will focus on the advancement
of this project, while USHA will retain and focus on the advanc ement of its exploration projects in the
USA, including the Jackpot Lake Lithium Brine Project where the Company has begun its drilling program
(https://tinyurl.com/26ryndz3).
USHA Shareholders must hold their USHA common shares on the Share Distribution Record Date in order
to receive their pro rata portion of the FMI common shares being distributed pursuant to the Arrangement.
USHA will disseminate a press release to notify shareholders in advance of the Share Distribution Record
Date once the conditions to closing of the Arrangement have been satisfied.
Jackpot Lake Lithium Brine Project Exploration Update
The Company is also pleased to provide an update on drilling ac tivities at its Jackpot Lake Lithium Brine
Property (“Project”). Drilling is scheduled to resume shortly, with exploration at borehole JP-1, which was
paused at the 440-metre level in December, set to continue to a target depth of approximately 600 metres
before moving on to the next drilling location. The Company ant icipates providing additional updates
throughout January and February 2023 as its exploration program progresses.
A video update from the Company is available at this link.
Qualified person
The technical content of this ne ws release has been reviewed an d approved by Seth Cude, PG, RM, MSc,
CASS, a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral
Projects.
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and exploration compan y focused on the
development of quality battery and precious metal properties th at are drill-ready with high-upside and
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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 Ar izona. USHA trades on the TSX Venture
Exchange under the symbol USHA, the OTCQB Exchange under the sy mbol 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 Relation s at 1-888-772-2452, email
[email protected], 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.
Forward-looking statements
This news release contains "f orward-looking information" un der applicable Canadian securities
legislation. Such forward-looking information re flects management's current beliefs and are based on a
number of estimates and/or assumptions made by and information currently available to the Company that,
while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that
may cause the actual results and future events to differ materially from those expressed or implied by such
forward-looking information. Read ers are cautioned that such forwar d-looking information are neither
promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not
limited to, general business, economic, competitive, political and social uncertainties, uncertain and
volatile equity and capital markets, lack of availabl e capital, actual results of exploration activities,
environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays
in obtaining governmental approvals and permits, and other risks in the mining industry.
These statements include proposed t erms of the spinout transaction, proposed business plans for each of
Usha and FMC, the listing of FMC’s Shares, the anticipated benefits of the transaction, and disclosure of
additional details concerning the transaction. These st atements reflect management's current estimates,
beliefs, intentions and expectations. They are not guarantees of future performance. Usha cautions that all
forward-looking statements are inherently uncertain and that actual performance may be affected by many
material factors, many of which are beyond their respective control. Such factors include, among other
things: determination of acceptable terms for the proposed spinout transaction, risks and uncertainties
relating to the receipt of approvals to proceed with and complete the transaction and the satisfaction of the
conditions precedent to the completion of the transaction, unexpected tax consequences, the market valuing
Usha and FMC in a manner not anticipated by manageme nt of the Company, the benefits of the spinout
transaction not being realized or as anticipated, and each of Usha and FMC being unable to add additional
properties to their respective portfolios. Accordingly, actual and future events, conditions and results may
differ materially from the estimates, beliefs, intent ions and expectations express ed or implied in the
forward-looking information. Except as required under applicable securities legislation, the Company does
not undertake to publicly update or revise forward-looking information.
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The Company is presently an exploration stage company . Exploration is highly speculative in nature,
involves many risks, requires substantial expenditu res, and may not result in the discovery of mineral
deposits that can be mined profitably. Furthermo re, the Company currently has no reserves on any of its
properties. As a result, there can be no assurance that such forward-looking statements will prove to be
accurate, and actual results and fu ture events could differ materially from those anticipated in such
statements.
No Offer or Solicitation to Purchase Securities in the United States
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe
for securities in the United States. The securities referred to herein have not been and will not be registered
under the Securities Act of 1933, as amended (the “Securities Act”), or with any securities regulatory
authority of any state or other jurisdiction in the United States, and may not be offered or sold, directly or
indirectly, within the United States or to, or for the account or benefit of, U.S. persons, as such term is
defined in Regulation S under the Securities Act (“Re gulation S”), except pursuant to an exemption from
or in a transaction not subject to the registration requirements of the Securities Act.