Search Minerals Announces Closing of $2,520,000 Flow-Through Private Placement
April 07 2021 - 4:02PM
Search Minerals Inc. (TSXV:
SMY) (“
Search” or the
“
Company”), is pleased to announce that the
Company has closed its previously announced non-brokered private
placement offering of 14,000,000 flow-through common shares of the
Company (the "
FT Shares") at a price of $0.18 per
FT Share, for aggregate gross proceeds of $2,520,000 (the
"
Private Placement").
The Company intends to use the proceeds from the
Private Placement to incur eligible Canadian Exploration Expenses
and flow-through mining expenditures, as defined under the Income
Tax Act (Canada), that will be renounced in favour of the
purchasers with an effective date of no later than December 31,
2021.
In consideration for its services, the Company
has paid a finder's fee to GloRes Securities Inc. with respect to
certain purchasers consisting of a cash fee totaling $102,078 and
issued 567,100 non-transferable finder's warrants (each, a
"Warrant"). Each Warrant entitles the holder to
acquire one common share of the Company at an exercise price of
$0.35 per common share for a period of 12 months from the date of
issuance.
All securities issued pursuant to the Private
Placement are subject to a statutory four-month hold period. The
Private Placement is subject to receipt of final approval of the
TSX Venture Exchange.
Certain insiders of the Company purchased as
aggregate of 270,334 FT Shares under the Private Placement,
constituting, to that extent, a "related party transaction" within
the meaning of 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,
(“InnovateNL”) and from the Atlantic Canada
Opportunity Agency (“ACOA”). 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 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 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 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.
Search Minerals (TSXV:SMY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Search Minerals (TSXV:SMY)
Historical Stock Chart
From Jul 2023 to Jul 2024