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Vancouver, British Columbia--(Newsfile Corp. - December 30, 2024) - Eureka Lithium Corp. (CSE: ERKA) (OTCQB: SCMCF) (FSE: S580) ("Eureka Lithium" or "Eureka" or the "Company") is pleased to announce that it has closed the previously announced non-brokered private placement (the "Private Placement") of 682,000 flow-through common shares of the Company ("Flow-Through Shares") at a price of $0.22 per Flow-Through Share for aggregate gross proceeds of $150,040. The Flow-Through Shares are intended to qualify as "flow through shares" within the meaning of the Income Tax Act (Canada) (the "Tax Act"). The gross proceeds from the issuance of the Flow-Through Shares will be used to incur "Canadian exploration expenses" as such term is defined in the Tax Act, which the Company intends to renounce to the subscribers pursuant to the Tax Act.
In connection with closing of the Private Placement, the Company paid cash finder's fees in the aggregate of $9,002.40 and issued a total of 40,920 finder's warrants (each, a "Finder's Warrant"). Each Finder's Warrant entitles the holder thereof to purchase one common share of the Company (each a "Common Share") at an exercise price of $0.22 until December 27, 2026. The Flow-Through Shares, including all underlying securities thereof, will have a hold period of four months and one day from the date of issue.
The Company also announces that it has closed a concurrent non-flow-through private placement (the "Non-Flow Through Private Placement") of 100,000 units of the Company (each a "Unit") at a price of $0.15 per Unit . Each Unit consists of one (1) Common Share and one (1) Common Share purchase warrant (each a "Warrant"), with each Warrant entitling the holder thereof to purchase one Common Share at an exercise price of $0.205 for a period of 24 months. The Units issued under the Non-Flow Through Private Placement were sold to purchasers pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions. The securities issued in connection with the Non-Flow Through Private Placement will not be subject to resale restrictions in accordance with applicable Canadian securities laws.
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.