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Eureka Lithium Corp. Announces Amendments to Warrant Terms in Private Placement Financing

Location: Vancouver, British Columbia
Date: September 24, 2024

Eureka Lithium Corp. (CSE: ERKA) (OTCQB: UREKF) (FSE: S580), hereafter referred to as "Eureka Lithium," has recently made significant amendments to the terms of the warrants (the "Warrants") that will be issued as part of its non-brokered private placement financing, known as the LIFE financing (the "Offering"). This Offering seeks to issue up to 8,333,333 units of the Company ("Units") at a price of $0.15 per Unit, potentially generating gross proceeds of up to $1,250,000, a plan that was initially announced on August 14, 2024.

Amendments to the Warrant Terms

The newly revised terms stipulate that the Warrants will only be exercisable under specific conditions:

1. Shareholder Approval: The proposed terms of the Offering must receive approval through an ordinary resolution from the Company’s shareholders.

2. Share Count Limitation: The Warrants can only be exercised if such action does not result in the total number of outstanding Common Shares of the Company exceeding 100% of its current issued and outstanding shares, with the exception of the shares issued as a result of exercising the Warrants.

These alterations are crucial in ensuring that the Company adheres to its corporate governance practices and maintains a balanced equity structure, potentially benefiting both the Company and its shareholders.

Expected Timeline and Conditions for Closing

The Company anticipates that the closing of this Offering will take place around the week of September 23, 2024. However, closing is dependent on several conditions, including but not limited to obtaining all necessary regulatory approvals. The net proceeds raised from this Offering are intended for advancing the Company’s mineral exploration assets located in Quebec, as well as for general corporate purposes. Additionally, finders’ fees may be provided to eligible arm’s-length individuals in relation to certain subscriptions that the Company accepts as part of this Offering.

Regulatory Compliance and Offering Details

In accordance with applicable regulatory mandates and the National Instrument 45-106 – Prospectus Exemptions ("NI 45-106"), the Units available through this Offering will be offered to purchasers in various provinces of Canada, excluding Quebec. This will be done pursuant to the listed issuer financing exemption under Part 5A.2 of NI 45-106. Importantly, the securities issued to Canadian residents under this Offering will not face resale restrictions, thus enhancing liquidity for investors.

A detailed offering document, dated September 23, 2024, related to the Offering is accessible under the Company’s profile at www.sedarplus.ca and also available on the Company’s official website at www.eurekalithiumcorp.com. Prospective investors are strongly encouraged to review this document thoroughly prior to making an investment decision.

U.S. Regulatory Considerations

It’s critical to note that the securities discussed in this announcement have not been registered under the United States Securities Act of 1933 or any applicable state securities laws. Consequently, these securities cannot be offered or sold within the United States without proper registration or established exemptions from such registration requirements. This press release should not be construed as an offer to sell or solicitation for an offer to buy any securities in the United States or in jurisdictions where such activities would not be lawful.

Company Overview: About Eureka Lithium Corp.

Eureka Lithium stands as the largest landholder focused on lithium within the northern third of Quebec, specifically in the Nunavik region. The Company holds full ownership of three projects that encompass 1,408 square kilometers within the developing Raglan West, Raglan South, and New Leaf Lithium Camps. These claims have been acquired from the renowned prospector Shawn Ryan and are situated in proximity to two operational nickel mines with access to deep-sea ports, positioning Eureka favorably within the mineral exploration landscape.

Contact Information

For any inquiries or further information, please reach out to:

David Bowen
Chief Executive Officer
Email: [email protected]

Caution Regarding Forward-Looking Statements

Certain statements within this press release, particularly those including terms such as "expects," "anticipates," "intends," "plans," "believes," and "estimates," reflect forward-looking information as defined under applicable securities laws. These statements express management’s expectations based on various factors and assumptions but entail known and unknown risks, uncertainties, and other influences that could lead to results differing materially from those expressed or implied in these forward-looking statements. As such, these factors deserve serious consideration and should not be overly relied upon.

While Eureka Lithium believes its expectations are reasonable, there is no guarantee that these beliefs will be vindicated. Furthermore, the Company is not obliged to publicly update any forward-looking statements following the release of this press release, except as required by law.

Compliance Note: The Canadian Securities Exchange (CSE) has not reviewed or approved the content of this press release.

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To access the original version of this press release, please visit Newsfile Corp..

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