Eureka Lithium arranges LIFE offering, financings

Executive Summary

• Eureka Lithium Corp. announced a series of private placements totaling up to $6 million in gross proceeds, including a LIFE offering and two concurrent private placements.
• The financing involves the issuance of units comprising common shares and warrants, with specific exercise prices and hold periods defined for each tranche.
• Proceeds are designated for exploration expenses on properties in Quebec and British Columbia, as well as general and administrative expenditures.

Key Details

• LIFE Offering:
  • Structure: Up to 4,761,904 units.
  • Price: 42 cents per unit.
  • Gross Proceeds: Up to $2 million.
  • Composition: Each unit comprises one common share and one common share purchase warrant.
  • Warrant Terms: Exercisable for 24 months at an exercise price of 45 cents per share.
  • Resale Restrictions: No resale restrictions under the listed issuer financing exemption (except for Quebec residents).
• Concurrent Private Placement 1:
  • Structure: Up to 4,761,904 units.
  • Price: 42 cents per unit.
  • Gross Proceeds: Up to $2 million.
  • Composition: Each unit comprises one common share and one common share purchase warrant.
  • Warrant Terms: Exercisable for 24 months at an exercise price of 45 cents per share.
• Concurrent Private Placement 2 (Flow-Through):
  • Structure: Up to 4,166,666 units.
  • Price: 48 cents per unit.
  • Gross Proceeds: Up to $2 million.
  • Composition: Each unit comprises one flow-through common share and one non-flow-through common share purchase warrant.
  • Warrant Terms: Exercisable for 24 months at an exercise price of 60 cents per share.
• General Terms:
  • Statutory Hold Period: Four months and one day from the date of issuance for securities issued in the concurrent offerings.
  • Use of Proceeds: Exploration expenses on properties in Quebec and British Columbia, and general and administrative expenditures.
  • Regulatory Approval: Subject to CSE and other regulatory approvals.
  • Finders' Fees: May be paid to eligible parties assisting in introducing subscribers.
• Cabin Lake Project Clarification:
  • The company holds an option to acquire a 100% interest in the Cabin Lake project (subject to a 2% NSR royalty) via its acquisition of Stairway Mining Inc., but does not currently hold 100% interest.
  • Obligations to earn 100% interest include:
    • Cash payments of $10,000 due within a reasonable time post-acquisition, Aug 31, 2026, Aug 31, 2027, and Aug 31, 2028.
    • Share issuances totaling $60,000: $5,000 post-acquisition, $10,000 (Aug 31, 2026), $20,000 (Aug 31, 2027), and $25,000 (Aug 31, 2028).
    • Exploration expenditures totaling $450,000: $100,000 by Aug 31, 2026, $150,000 by Aug 31, 2027, and $200,000 by Aug 31, 2028.
  • Post-option exercise, the company has the right to purchase 50% of the 2% NSR royalty for $500,000.