VANCOUVER,
Oct. 11, 2016
/CNW/ - Search Minerals Inc. (TSXV: SMY)
("Search" or the "Company")
is pleased to announce the closing of the first
tranche of its previously announced private placement. Further
to its news release dated September 13,
2016, the Company has completed the first tranche of its
non-brokered private placement (the "Offering") raising gross
proceeds of $364,000 by the issuance
of 5,200,000 units (the "Units") at $0.07 per Unit. Each Unit consists of one
common share in the capital of the Company (a "Share") and one
share purchase warrant (a "Warrant"). Each Warrant entitles
the holder to purchase one additional common share in the capital
of the Company (a "Warrant Share") at a price of $0.14 per Warrant Share for a period of 12 months
from the closing of the Offering. Raymond Saunders, a director of the Company,
purchased 436,716 Units under this initial tranche.
All securities issued pursuant to the Private Placement
are subject to a statutory hold period of four months plus one day
from the date of issuance, in accordance with applicable securities
legislation.
The proceeds from the Private Placement will be used to
complete environmental assessment applications and for general
working capital requirements.
The Company intends to close the final tranche of the
Offering by October 28, 2016. Closing
of the Private Placement is subject to a number of conditions,
including receipt of all necessary corporate and regulatory
approvals, including the approval of the TSX Venture Exchange.
No finder's fees or commissions are payable in connection
with the financing.
As Raymond Saunders is
considered to be a "related party" of the Company, the issuance of
Units to Mr. Saunders will be considered to be "related party
transaction" under Multilateral Instrument 61-101 - Protection
of Minority Security Holders in Special Transactions ("MI
61-101"). All of the independent directors of the
Company, acting in good faith, considered the transactions and have
determined that the fair market value of the securities being
issued to Mr. Saunders and the consideration being paid is
reasonable. The Company intends to rely on the exemptions from the
valuation and minority shareholder approval requirements of MI
61-101 contained in sections 5.5(a) and 5.7(a) or (b) of MI
61-101.
About Search Minerals Inc.
Led by
a proven management team and board of directors, Search is focused
on finding and developing resources within the emerging Port Hope
Simpson Critical Rare Earth Element (CREE) District of SE Labrador. The Company controls a belt 70 km
long and 8 km wide including its 100% interest in the FOXTROT
Project which is road accessible and at tidewater. Exploration
efforts have advanced "Deepwater Fox" and "Fox Meadow" as
significant new CREE prospects very similar and in close proximity
to the FOXTROT discovery. While the Company has identified more
than 20 other prospects in the District, its primary objective
remains development of FOXTROT by confirming proprietary processing
technology at the pilot plant level (in progress) and delineation
of prospects that will ensure competitive-low cost production
beyond the 14-year mine life contemplated in the preliminary
economic assessment of FOXTROT completed in April 2016. The
FOXTROT Project has a low capital cost to bring the initial project
into production ($152 M), a short
payback period, and is scalable due to Search's proprietary
processing technology.
All material information on the Company may be found on
its website at
www.searchminerals.ca and on SEDAR
at www.sedar.com
About CREE's
Identified as
Neodymium (Nd), Europium (Eu), Terbium (Tb), Dysprosium (Dy) and
Yttrium (Y) this valuable subset of the complete series of
seventeen rare earth elements is considered critical due to high
demand and/or constrained domestic supply. Containing unique
properties which enhance the performance of a range of innovative
technologies, CREE's are essential components in the development of
permanent magnets and a variety of other components used in
renewable energy, green technology automobiles, medical devices,
electronics and agricultural production.
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 information" and "forward-looking
statements" (collectively "forward-looking statements") within the
meaning of applicable Canadian and United
States securities legislation including the United States
Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical fact, included
herein, without limitation, statements relating the future
operating or financial performance of the Company, are
forward-looking statements.
Forward-looking statements are frequently, but not
always, identified by words such as "expects", "anticipates",
"believes", "intends", "estimates", "potential", "possible", and
similar expressions, or statements that events, conditions, or
results "will", "may", "could", or "should" occur or be
achieved. Forward-looking statements in this news release
relate to, among other things the completion of subsequent tranches
of the Private Placement and the use of proceeds of the Private
Placement. Actual future results may differ materially.
There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such statements.
Forward-looking statements reflect the beliefs, opinions and
projections on the date the statements are made and are based upon
a number of assumptions and estimates that, while considered
reasonable by the respective parties, are inherently subject to
significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors, both known and
unknown, could cause actual results, performance or achievements to
be materially different from the results, performance or
achievements that are or may be expressed or implied by such
forward-looking statements and the parties have made assumptions
and estimates based on or related to many of these factors.
Such factors include, without limitation, the risk that the Company
is not able to find suitable investors for the Private Placement
and that management of the Company may decide to use the proceeds
in a different way. Readers should not
place undue reliance on the forward-looking statements and
information contained in this news release concerning these
times. Except as required by law, Search does not assume any
obligation to update the forward-looking statements of beliefs,
opinions, projections, or other factors, should they change, except
as required by law.
SOURCE Search Minerals Inc.