Mr. Jeffrey Wilson reports
EUREKA LITHIUM CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT FOR AGGREGATE GROSS PROCEEDS OF $6,681,782
Further to its news release dated June 16, 2023, Eureka Lithium Corp.
has closed the second tranche of its non-brokered private placement, having issued 2,783,164 units for gross proceeds of $1,496,582. Eureka had previously closed the first tranche of the offering, as noted in the company's news release dated June 1, 2023, for gross proceeds of $5,185,200. The company issued an aggregate of 12,336,589 units pursuant to the offering, for aggregate gross proceeds of $6,681,782.
The second tranche
The company issued the following, for aggregate gross proceeds of $1,496,582:
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2,083,164 non-flow-through units of the company at a price of 50 cents per non-FT unit for gross proceeds of approximately $1,041,582, with each non-FT unit comprising one common share in the capital of the company and one-half of one common share purchase warrant, with each non-FT warrant entitling the holder to purchase one common share at a price of 75 cents per non-FT warrant share for a period of two years after the date of issuance;
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700,000 Quebec superflow-through units of the company at a price of 65 cents per super-FT unit for gross proceeds of $455,000, with each super-FT unit comprising one common share that qualifies as a flow-through share as defined in the Income Tax Act (Canada) and one-half of one flow-through common share purchase warrant that qualifies as a flow-through share as defined in the Income Tax Act (Canada), with each super-FT warrant entitling the holder to purchase one common share in the capital of the company at a price of 85 cents per super-FT warrant share for a period of two years after the date of issuance.
The company paid finders' fees totalling $81,340.75 and issued 151,471 broker warrants to certain finders in connection with the sale of the subscription receipts to purchasers introduced to the company by such finders. Each broker warrant entitles the holder thereof to acquire one common share in the capital of the company at a price of 75 cents for broker warrants issued in connection with non-FT units, and 85 cents for broker warrants issued in connection with the super-FT units, per common share for a period of 24 months from the closing date of the concurrent financing.
All securities issued under the offering are subject to a statutory hold period of four months and a day.
The net proceeds of the concurrent financing will be used for qualified expenditures in respect of the mineral claims acquired pursuant to the acquisition (see the company's June 1, 2023, news release), and, in the case of the non-FT units, for general working capital.
Jeffrey Wilson, Eureka chief executive officer, commented: "We are pleased to complete this financing and close the offering with over $6.6-million in aggregate gross proceeds. The closing of this offering
provides the company with the financial capacity to initiate and conduct an aggressive initial campaign of mapping, prospecting and sampling across all projects within the company's project portfolio, including highly prospective areas of known concentrations of elevated lithium values, as reported in Quebec government lake sediment sampling results. We look forward to keeping investors informed as fieldwork commences and initial results become available."
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-per-cent ownership of three projects comprising 1,408 square kilometres 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.
We seek Safe Harbor.
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