Search Minerals Announces Closing of Oversubscribed Private Placement
January 06 2021 - 4:02PM
Search Minerals Inc. (TSXV:
SMY) (“
Search” or the
“
Company”), is pleased to announce that due to
strong investor demand, the Company increased the size of and
closed its previously announced non-brokered private placement
offering of units of the Company (the "
Units") for
gross proceeds of $534,000 (the "
Private
Placement").
Pursuant to the Private Placement, the Company
issued 8,900,000 Units at a price of $0.06 per Unit, with each Unit
consisting of one common share of the Company (each, a
"Share") and one common share purchase warrant of
the Company (each, a "Warrant"). Each Warrant
entitles the holder to acquire an additional Share for a period of
2 years at a price of $0.06 in the first year and $0.08 in the
second year of the term of the Warrant.
The proceeds of the Private Placement will
primarily be used for general working capital purposes. The
securities issued in connection with the Private Placement will be
subject to a four month and one day hold period under applicable
securities laws.
Certain insiders of the Company purchased an
aggregate of 420,000 Units under the Private Placement,
constituting, to that extent, a "related party transaction" within
the meaning of TSX Venture Exchange Policy 5.9 and Multilateral
Instrument 61-101 (“MI 61-101”). The Company has
relied on the exemptions from the valuation and minority
shareholder approval requirements of MI 61-101 (and Policy 5.9)
contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect
of such insider participation. The Company did not file a material
change report more than 21 days before the expected closing of the
Private Placement, as the details and amounts of the insider
participation were not finalized until closer to the closing and
the Company wished to close the transaction as soon as practicable
for sound business reasons.
About Search Minerals Inc.
Led by a proven management team and board of
directors, Search is focused on finding and developing Critical
Rare Earths Elements (CREE), Zirconium (Zr) and Hafnium (Hf)
resources within the emerging Port Hope Simpson – St. Lewis CREE
District of South East Labrador. The Company controls a belt 63 km
long and 2 km wide and is road accessible, on tidewater, and
located within 3 local communities. Search has completed a
preliminary economic assessment report for
FOXTROT, and a resource estimate for DEEP
FOX. Search is also working on three exploration prospects
along the belt which include: FOX MEADOW, SILVER
FOX and AWESOME FOX.
Search has continued to optimize our patented
Direct Extraction Process technology with the generous support from
the Department of Tourism, Culture, Industry and Innovation,
Government of Newfoundland and Labrador, and from the Atlantic
Canada Opportunity Agency. We have completed two pilot plant
operations and produced highly purified mixed rare earth carbonate
concentrate and mixed REO concentrate for separation and
refining.
For further information, please
contact:
Greg AndrewsPresident and CEOTel:
604-998-3432E-mail: info@searchminerals.ca
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” Statements:
Except for the statements of historical fact,
this news release contains "forward-looking information" within the
meaning of the applicable Canadian securities legislation that is
based on expectations, estimates and projections as at the date of
this news release. "Forward-looking information" in this news
release includes information about the Company’s anticipated use of
proceeds of the Private Placement, and other forward-looking
information. Factors that could cause actual results to differ
materially from those described in such forward-looking information
include, but are not limited to, the inability to obtain the
necessary TSX Venture Exchange approvals to complete the Private
Placement or to apply the proceeds of the Private Placement as
anticipated by management.
The forward-looking information in this news
release reflects the current expectations, assumptions and/or
beliefs of the Company based on information currently available to
the Company. In connection with the forward-looking information
contained in this news release, the Company has made assumptions
about the Company’s ability to close the Private Placement, that
the Company's financial condition and development plans do not
change as a result of unforeseen events, and that the Company will
receive all required regulatory approvals, including TSX Venture
Exchange approval, for the Private Placement.
Although the Company believes that the
assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein. The
Company does not assume any obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward-looking
statements, unless and until required by applicable securities
laws. Additional information identifying risks and uncertainties is
contained in the Company's filings with the Canadian securities
regulators, which filings are available at www.sedar.com.
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