VANCOUVER, Dec. 3, 2015 /CNW/ - (TSXV: SMY) Search
Minerals Inc. ("Search" or the "Company") reports
that it has entered into debt settlement agreements (the
"Settlement Agreements") with creditors of the Company,
pursuant to which the Company has agreed to issue an aggregate of
617,143 common shares of the Company (the "Shares") at a
deemed price of $0.07 per Share (the
"Shares for Debt Transactions").
The total amount of indebtedness settled by the Settlement
Agreements is $62,665.77 (the
"Debt"), of which $25,000 is
payable to NunatuKavut Community Council ("NCC") pursuant to
the Exploration Activity Agreement (the "NCC Agreement")
between the Company and NCC dated August 22,
2012, as amended, (the "NCC Debt") and $37,665.77 of which is payable under a rental
agreement entered into between the Company and its former landlord
(the "Landlord") for a property in Port Hope Simpson, Newfoundland and
Labrador (the "Rental
Debt").
The Company will issue 357,143 Shares to NCC to settle the NCC
Debt, which will be issued concurrently with an additional 50,000
Shares due for issue under the original terms of the NCC
Agreement.
In addition, the Company will issue 260,000 Shares to the
Landlord to settle $18,200 of the
Rental Debt. Pursuant to the terms of the Settlement Agreement with
the Landlord, the remaining $19,465.77 of the Rental Debt will be paid to the
Landlord in cash.
Greg Andrews, President and CEO
comments:" We are very appreciative of the continued support by the
NunatuKavut Community Council for the development of the FOXTROT
Project. Search also appreciates the support provided by the
former landlord in Port Hope
Simpson during our rental period with them."
The Company decided to settle an aggregate of $43,200 of the Debt with Shares in order to
preserve its remaining cash for operations and the settlement of
other obligations.
The completion of the Shares for Debt Transactions is subject to
the approval of the TSX Venture Exchange. All Shares issued will be
subject to a four month hold period which will expire on the date
that is four months and one day from the date of issue.
About Search
Search is a TSX Venture Exchange listed company focused on
creating value through finding and developing "critical rare earth
element ("CREE")" mineral assets in Labrador. CREEs (Nd, Eu, Tb, Dy, Y) have
growing demand, constrained or restricted supply and are commonly
used in innovative technologies.
Search is the discoverer of the Port Hope Simpson CREE District,
a highly prospective CREE belt located in southeast Labrador, where the Company controls a belt 70
km long and up to 8 km wide. Search owns 100% of the advanced CREE
resource called the Foxtrot Project ("Foxtrot"), and a
recently announced Foxtrot-like prospect called "Deepwater Fox". In
addition, the Company has identified more than 20 other
Foxtrot-like prospects in the District. The primary focus of Search
is to continue to advance the Foxtrot resource, while evaluating
other Foxtrot-like prospects. Several of the Foxtrot-like prospects
require exploration drilling programs and may provide additional
resources to a central processing facility that would be situated
within the District.
In addition, Search holds a number of other CREE mineral
prospects in Labrador in its
portfolio, including claims in the Red Wine Complex, in the Henley
Harbour area.
Search is led by a management team and board of directors with
proven track records in the mining industry. The Company also has
experienced geological and metallurgical teams led by Dr.
Randy Miller and Dr. David Dreisinger, respectively.
All material information on the Company may be found on its
website at www.searchminerals.ca and on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation that are not
historical facts. These forward looking statements relate to future
events or the Company's future performance, business prospects or
opportunities, including the completion of the Shares for Debt
Transactions. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements are necessarily based on a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties and other factors
which may cause actual results and future events to differ
materially from those expressed or implied by such forward-looking
statements. Such factors include, but are not limited to: general
business, economic and social uncertainties; litigation,
legislative, environmental and other judicial, regulatory,
political and competitive developments; and those additional risks
set out in Search's public documents filed on SEDAR at
www.sedar.com. Although Search believes that the assumptions and
factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by law,
Search disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
SOURCE Search Minerals Inc.