Usha closes $413,166 first tranche of financing

Oct 18, 2020

2020-10-16 16:11 ET – News Release

Mr. Deepak Varshney reports

USHA RESOURCES CLOSES FIRST TRANCHE OF C$6.325 MILLION FINANCING AND AMENDS TERMS OF FLOW-THROUGH PRIVATE PLACEMENT

Usha Resources Ltd., further to its news release of Sept. 17, 2020, is proceeding with the close of the first tranche of the company’s non-brokered private placement, issuing an aggregate of 2,065,830 units at 20 cents per unit raising gross proceeds of $413,166.

Each unit consists of one common share of the company and one-half of one transferable common share purchase warrant. Each warrant entitles the holder to acquire an additional share for a period of two years at an exercise price of 30 cents per share, provided that in the event that the closing price of the company’s shares on the TSX Venture Exchange (or such other exchange on which the company’s shares may become traded) is 75 cents or greater per share during any 30 consecutive trading day period at any time subsequent to four months and one day after the closing date, the warrants will expire at 4 p.m. (Vancouver time) on the 30th day after the date on which the company provides notice of such accelerated expiry to the holders of the warrants.

All securities issued in the private placement will be subject to a four-month-and-one-day hold period plus the TSX-V hold period. The company will pay finders’ fees totalling $1,050 cash and 5,250 non-transferable finder warrants to PI Financial Corp. in accordance with applicable securities laws. The finder’s warrants are exercisable on the same terms as the warrants issued in the private placement.

The net proceeds from the private placement will be used for exploration at Usha’s Lost Basin and Nicobat projects and for working capital and general corporate purposes.

The company expects to close the second and final tranche of the private placement shortly.

The company also announces that it is amending the terms of its flow-through private placement, reducing the issuance price of the flow-through units from 30 cents per FT unit to 25 cents per FT unit. Each FT unit will consist of one flow-through common share in the capital of the company and one-half of one transferable warrant, with each whole warrant exercisable at 35 cents per share, instead of 40 cents per share as previously announced, for a period of two years subject to the Accelerated Expiry Provisions. The company expects to raise up to $300,000 in the FT private placement through the issuance of up to 1.2 million FT units.

Closing of the private placement and FT private placement is subject to the approval of the TSX-V.

About Usha Resources Ltd.

Usha is a Canadian mineral acquisition and exploration company based in Vancouver, B.C., Canada. Usha is exploring for commercially exploitable mineral deposits and is currently focused on deposits located in Northwest Ontario, Canada and the Lost Basin gold mining district in Mohave County, Ariz., U.S.

We seek Safe Harbor.

https://www.usharesources.com/