Eureka Lithium Corp Announces LIFE Offering and Concurrent Private Placements
Executive Summary
- Eureka Lithium announced a planned non‑brokered private placement financing of up to $6 million across three offerings (LIFE Offering, Concurrent Private Placement, and FT Units).
- The offerings consist of units each containing one common share and one warrant; exercise prices range from $0.45 to $0.60 per share with a 24‑month term.
- Net proceeds are earmarked for exploration expenses in Quebec and British Columbia and for general and administrative purposes, and the company clarified outstanding obligations to acquire a 100 % interest in the Cabin Lake project.
Key Details
- LIFE Offering: Up to 4,761,904 units at $0.42 per warrant (equivalent to $0.42 per unit) for gross proceeds of up to $2,000,000. Each unit = 1 common share + 1 purchase warrant.
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Warrant terms (LIFE): Exercise price $0.45 per share; exercisable for 24 months from closing.
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Concurrent Private Placement – Part 1: Up to 4,761,904 units at $0.42 per unit, gross proceeds up to $2,000,000. Same composition (common share + warrant) and 24‑month exercise period at $0.45 per share.
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Concurrent Private Placement – Part 2 (FT Units): Up to 4,166,666 units at $0.48 per FT unit, gross proceeds up to $2,000,000. Each FT unit includes a flow‑through common share and a non‑flow‑through warrant exercisable at $0.60 per share for 24 months.
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Statutory Hold Period: All securities issued in the Concurrent Offerings are subject to a four‑month‑plus‑one‑day hold period under Canadian securities law.
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Use of Proceeds: Funds will be applied to exploration expenses on properties in Quebec and British Columbia and for general and administrative expenditures.
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Finder’s Fees: The company may pay finder’s fees in accordance with CSE policies.
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Regulatory Conditions: Closing is subject to required regulatory approvals, including CSE approval.
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Cabin Lake Project Option (Clarification):
- Cash payments of $10,000 due shortly after Stairway acquisition and on 31 Aug 2026, 31 Aug 2027, 31 Aug 2028.
- Issuance of common shares valued at $5,000, $10,000, $20,000, $25,000 on the same dates respectively.
- Exploration expenditures of $450,000 required by 31 Aug 2026 ($100k), 31 Aug 2027 ($150k), and 31 Aug 2028 ($200k).
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Upon fulfillment, Eureka will obtain a 100 % interest in Cabin Lake (subject to a 2 % NSR) and may purchase 50 % of the royalty for $500,000.
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Legal Disclaimers: Offerings are exempt from U.S. registration; not an offer or solicitation in the United States.
Notable Quotes
- David Bowen, CEO: “The proceeds from these offerings will accelerate our exploration program across Quebec and British Columbia and support the continued development of our strategic lithium assets.”