Eureka Lithium Corp Amendment to LIFE Financing

Rhea-AI Summary

Eureka Lithium Corp. (CSE: ERKA) (OTCQB: UREKF) has amended the terms of warrants for its non-brokered private placement LIFE financing. The offering aims to raise up to $1,250,000 by issuing 8,333,333 units at $0.15 per unit. The warrants will now only be exercisable if shareholders approve or if exercise doesn't exceed 100% of current outstanding shares. Closing is expected around September 23, 2024, subject to regulatory approvals. Proceeds will fund Quebec mineral exploration and corporate purposes. The offering is available to Canadian residents (except Quebec) under NI 45-106, with no resale restrictions. An amended offering document is available on SEDAR+ and Eureka's website.

Positive

• Potential to raise up to $1,250,000 in funding
• Proceeds to be used for advancing Quebec mineral exploration assets
• No resale restrictions on securities for Canadian resident subscribers

Negative

• Amended warrant terms may limit immediate exercisability
• Offering subject to shareholder approval or share issuance limitations
• Potential dilution for existing shareholders if warrants are exercised

Vancouver, British Columbia--(Newsfile Corp. - September 24, 2024) - Eureka Lithium Corp. (CSE: ERKA) (OTCQB: UREKF) (FSE: S580) ("Eureka Lithium" or "Eureka" or the "Company") announces that it has amended the terms of the warrants (the "Warrants") to be issued in connection with the non-brokered private placement financing LIFE financing (the "Offering") of up to 8,333,333 units of the Company ("Units") at a price of $0.15 per Unit for aggregate gross proceeds of up to $1,250,000 announced on August 14, 2024.

The terms of the Warrants have been amended such that the Warrants will only be exercisable if either: (i) shareholders of the Company approve the terms of the Offering by an ordinary resolution; or (ii) such exercise would not result in the number of issued and outstanding Common Shares of the Company exceeding 100% of its current issued and outstanding Common Shares (other than as a result of the exercise of the Warrants).

Closing of the Offering is anticipated to occur on or about the week of September 23, 2024. Closing is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals. The net proceeds of the Offering are intended to be used to advance the Company's Quebec mineral exploration assets and for general corporate purposes. Finders' fees may be paid to eligible arm's length persons with respect to certain subscriptions accepted by the Company.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"), the Units issuable under the Offering will be offered for sale to purchasers in of the provinces of Canada (except Quebec) pursuant to the listed issuer financing exemption under Part 5A.2 of NI 45-106. Pursuant to NI 45- 106, the securities issued to Canadian resident subscribers under the Offering will not be subject to resale restrictions.

There is an amended offering document dated September [23], 2024 related to the Offering that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.eurekalithiumcorp.com. Prospective investors should read this offering document before making an investment decision.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any U.S. state securities laws, and may not be offered or sold in the United States absent registration or available exemptions from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States, or in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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% ownership of three projects comprising 1,408 sq. km 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.

For more information please contact:
David Bowen
Chief Executive Officer
Email: info@eurekalithiumcorp.com

Cautionary Statement

Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, such as statements regarding the contemplated completion of the Acquisition and the Concurrent Financing, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements reflect management's expectations and are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company believes that the expectations reflected in the forward-looking statements contained in this news release are reasonable, but no assurance can be given that these expectations will prove to be correct, nor that the Acquisition will be completed as contemplated, or at all, or that the Concurrent Financing will be completed as contemplated, or at all. The Company undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.

The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved the contents of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/224486

FAQ

What is the new amendment to Eureka Lithium's (UREKF) LIFE financing?

Eureka Lithium has amended the terms of warrants for its LIFE financing. The warrants will only be exercisable if shareholders approve or if exercise doesn't exceed 100% of current outstanding shares.

How much is Eureka Lithium (UREKF) aiming to raise in its private placement?

Eureka Lithium is aiming to raise up to $1,250,000 by issuing 8,333,333 units at $0.15 per unit in its non-brokered private placement LIFE financing.

When is the expected closing date for Eureka Lithium's (UREKF) LIFE financing?

The closing of Eureka Lithium's LIFE financing is expected to occur on or about the week of September 23, 2024, subject to regulatory approvals.

How will Eureka Lithium (UREKF) use the proceeds from the LIFE financing?

Eureka Lithium intends to use the net proceeds from the LIFE financing to advance its Quebec mineral exploration assets and for general corporate purposes.