Usha Resources and Totec Resources Complete Concurrent Financing for Gross Proceeds of $4,500,000
Usha sheds White Willow exploration costs into Totec vehicle, securing $4.5 million in fresh capital for the project while retaining significant equity.
The most recent news (January 16, 2026) confirms the closing of a $4,500,000 CAD concurrent financing for Totec Resources Ltd. (the "CPC") in connection with its Qualifying Transaction (QT) with Usha Resources. The financing consisted of 30,000,000 units at $0.15 each. Each unit includes a warrant exercisable at $0.25 for 24 months. This financing is the critical funding required to advance the White Willow Property, which Usha is selling/spinning into Totec. Additionally, Totec will undergo a 2:1 share consolidation. Usha previously confirmed it would receive 5,500,000 post-consolidation shares of Totec as consideration.
- Cash Injection: The $4.5 million raised is nearly triple the size of the initial $1.5 million target mentioned in the May 2025 LOI. This is a material improvement in the project's ability to fund a multi-phase exploration program without further diluting Usha shareholders directly.
- Balance Sheet Clean-up: Usha is successfully offloading the exploration risk and carrying costs of White Willow to a separate entity (Totec). Given Usha’s modest cash position ($336,531 as of Sept 30, 2025), this prevents a liquidity crisis.
- Strategic Value: Usha’s 5,500,000 shares in Totec, valued at the financing price of $0.15, are worth approximately $825,000 CAD. This provides Usha with a liquid asset (once trading resumes and hold periods expire) and continued upside to the property.
- Debt Management: This follows a $500,000 convertible debenture raise for Usha itself on January 12, 2026, suggesting that while the project is funded, the parent company still requires debt to maintain general working capital.
Usha Resources is a junior explorer focused on lithium and copper. - White Willow (Ontario): Now the primary focus via the Totec spin-out. It is a lithium-tantalum pegmatite project. - Jackpot Lake (Nevada): A lithium brine project. This was expected to be sold for up to $26M USD, but the exclusivity with Stardust Power expired/terminated in late 2025. Usha still retains 100% (subject to a 1% royalty). - Southern Arm (Quebec): A copper-gold project that management describes as a "core asset," though recent news focus has been almost entirely on the White Willow divestment.