• USHA Team

Usha Closes First Tranche of C$500,000 Financing and Amends Terms of Flow-Through Private Placement

Updated: Feb 7

Vancouver, British Columbia / October 16, 2020 – Usha Resources Ltd. (“USHA” or the “Company”) (TSXV: USHA) (OTCQB: USHAF) is pleased to announce that, further to its news release of September 17, 2020, it is proceeding with the close of the first tranche of the Company's non-brokered private placement (the “Private Placement”), issuing an aggregate of 2,065,830 units (the “Units”) at $0.20 per Unit raising gross proceeds of $413,166.


Each Unit consists of one common share (a “Share”) of the Company and one-half of one transferable common share purchase warrant (each whole warrant a "Warrant").  Each Warrant entitles the holder to acquire an additional Share for a period of 2 years at an exercise price of $0.30 per Share, provided that in the event that the closing price of the Company’s Shares on the TSX Venture Exchange (the “TSXV”) (or such other exchange on which the Company’s Shares may become traded) is $0.75 or greater per Share during any thirty (30) consecutive trading day period at any time subsequent to four months and one day after the closing date, the Warrants will expire at 4:00 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 (the “Accelerated Expiry Provisions”).


All securities issued in the Private Placement will be subject to a four month and one day hold period plus the TSXV hold period.  The Company will pay finders' fees totaling $1,050 cash and 5,250 non-transferable finder warrants (the "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 (the “FT Private Placement”) reducing the issuance price of the flow-through units (a “FT Unit”) from $0.30 per FT Unit to $0.25 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 $0.35 per Share, instead of $0.40 per Share as previously announced, for a period of 2 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 1,200,000 FT Units.


Closing of the Private Placement and FT Private Placement is subject to the approval of the TSXV.


About Usha Resources Ltd.

Usha Resources Ltd. is a Canadian mineral acquisition and exploration company based in Vancouver, BC, 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, Arizona, U.S.A.

USHA RESOURCES LTD.

“Deepak Varshney” CEO and Director

For more information, please phone 778-899-1780, email info@usharesources.com or visit www.usharsesources.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements:

This news release includes "forward-looking information" under applicable Canadian securities legislation including, but not limited to, the anticipated closing of the Private Placement and FT Private Placement. Such forward-looking information reflects management's current beliefs and are based on a number of estimates and assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that such forward-looking information are neither promises nor guarantees, and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. There are no assurances that the Company will successfully complete the Private Placement and FT Private Placement on the terms contemplated or at all. All forward-looking information contained in this news release is qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.


The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.


This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities.  Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.