VANCOUVER, Oct. 31, 2016 /CNW/ - Search Minerals Inc.
(TSXV: SMY) ("Search" or the "Company") is
pleased to announce the closing of the second tranche of its
previously announced private placement. Further to its news
releases dated September 13, 2016,
October 11, 2016 and October 26, 2016, the Company has completed the
second tranche of its non-brokered private placement (the
"Offering") raising gross proceeds of $405,300 by the issuance of 5,790,000 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. Certain directors of the Company
(the "Directors") purchased 390,000 Units under this
tranche. With the completion of the two tranches, the Company has
issued 10,990,000 Units for gross proceeds of $769,300.
All securities issued pursuant to the Offering 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 Offering 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 November 8, 2016. Closing of the
Offering 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 the Directors are considered to be "related parties" of the
Company, the issuance of Units to the Directors will be considered
to be a "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 the Directors 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.