Searchlight Minerals Corp. announces closing of $5 million private placement and approval of additional private placement financ
03 Januar 2008 - 12:00PM
PR Newswire (US)
HENDERSON, NV, Jan. 3 /PRNewswire-FirstCall/ -- Searchlight
Minerals Corp. (OTC BB: SRCH) (the "Company"), today announced that
it has closed a private placement financing for aggregate gross
proceeds of $5,000,000. The securities sold in this private
placement were issued to the Arlington Group Limited, a non-US
investor as contemplated under Regulation S of the Securities Act
of 1933 (the "Securities Act"). The private placement consisted of
a total of 3,125,000 units sold at a price of $1.60 per unit. Each
unit consisted of one share of the Company's common stock and
one-half of one warrant, with each whole warrant entitling the
holder to purchase one additional share of common stock at a price
of $2.40 per share for a period of two years from the date of
issuance. In addition, the Company will issue to the Arlington
Group Limited an additional 156,250 shares of common stock, equal
to 5% of the total number of units sold, for no additional
consideration as a commission. As a result, the Company issued to
the Arlington Group Limited a total of 3,281,250 shares of the
Company's common stock and 1,562,500 share purchase warrants. In
addition to the private placement with the Arlington Group Limited,
the Company has approved private placement offerings for an
additional $5,000,000 in total potential gross proceeds. The first
private placement offering (the "US Offering") is for 1,875,000
units at a price of $1.60 per unit, offered to "accredited
investors" as defined in Regulation D of the Securities Act of 1933
(the "Securities Act"), with the second private placement offering
(the "Foreign Offering") for 1,250,000 units at a price of $1.60
per unit, offered to non-US persons as contemplated under
Regulation S of the Securities Act. The US Offering and the Foreign
Offering are being made by the Company on the same terms and
conditions as the private placement with the Arlington Group
Limited. The offering price for the private placement with the
Arlington Group Limited and the US and Foreign Offerings was set at
a 10% discount to the volume-weighted average share price of the
Company's common stock during the 10 days prior to December 12,
2007, the date on which each of the above offerings was approved by
the Company's Board of Directors. Clarkdale Slag Project Update The
Company continues to move forward on the construction, development
and implementation of its first production module at the Clarkdale
Slag Project. This first production module will consist of a full
scale production and processing circuit, expected to be able to
process between 100 and 250 tons per day of slag material. Building
construction/refurbishment is nearing completion, and most of the
major pieces of equipment have arrived on site. It remains the
Company's goal to have all components of the first full production
module installed and operating by the end of the first quarter in
2008, with the feasibility study beginning in the second quarter.
If this first production module proves to be economically feasible,
the Company intends to construct additional production modules that
will operate in concert with each other. Management Comments "The
additional capital raised in the private placement with the
Arlington Group, and any additional capital raised under the US and
Foreign Offerings, will provide the Company with significant
financial flexibility in achieving its key 2008 goals," stated Ian
McNeil, President and Chief Executive Officer of Searchlight
Minerals Corp. "Optimizing and establishing the feasibility of the
first production module, laying the groundwork for a 2,000
ton-per-day commercial production facility at the Clarkdale Slag
Project, and continuing the exploration program at the Searchlight
Gold Project continue to remain the Company's top priorities." "We
are very pleased with our continued progress towards the initial
production of precious and base metals at Clarkdale. Our
operational team has done a great job of advancing the project
while facing long lead times in acquiring certain equipment and
managing with the shortage of other resources in a resurgent mining
industry. We expect to finish equipment installation, plumbing and
electrical work early in the current quarter. Our plans call for
the first production module to commence operating late in the first
quarter, and this will be followed by an independent verification
of the commercial feasibility of our metals extraction process
beginning in the second quarter," concluded McNeil. About
Searchlight Minerals Corp. Searchlight Minerals Corp. is a dynamic
mineral exploration company focused on the acquisition and
development of projects in the southwestern United States. The
Company is currently involved in two projects: (1) the Clarkdale
Slag Project, located in Clarkdale, Arizona, which seeks to recover
precious and base metals from the reprocessing of slag material
produced from the smelting of copper ores from former mines in the
Jerome, Arizona area; and (2) the Searchlight Gold Project, which
involves exploration for precious metals on mining claims near
Searchlight, Nevada. The Clarkdale Project is the more advanced of
two ongoing projects that the Company is pursuing. The Searchlight
Gold Project is an early-stage gold exploration endeavor on 3,200
acres located approximately 50 miles south of Las Vegas, Nevada.
Searchlight Minerals Corp. is headquartered in Henderson, Nevada,
and its common stock is listed on the OTC Bulletin Board under the
symbol "SRCH". This news release does not constitute an offer to
sell or a solicitation of an offer to buy any of the Company's
securities. The securities sold under the Offering have not been
registered under the United States Securities Act of 1933, as
amended and may not be offered or sold within the United States or
to U.S. persons unless an exemption from such registration is
available. Forward-Looking Statements This Press Release may
contain, in addition to historical information, forward-looking
statements. Statements in this news release that are
forward-looking statements are subject to various risks and
uncertainties concerning the specific factors disclosed under the
heading "Risk Factors" and elsewhere in the Company's periodic
filings with the U.S. Securities and Exchange Commission. When used
in this news release, the words such as "could," "plan",
"estimate", "expect", "intend", "may", "potential", "should", and
similar expressions, are forward-looking statements. The risk
factors that could cause actual results to differ from these
forward-looking statements include, but are not restricted to the
Company's limited operating history, uncertainties about the
availability of additional financing, geological or mechanical
difficulties affecting the Company's planned geological work
programs, uncertainty of estimates of mineralized material,
operational risk, environmental risk, financial risk, currency
risk, dependence on joint venture partners and other statements
that are not historical facts as disclosed under the heading "Risk
Factors" and elsewhere in the Company's periodic filings with
securities regulators in the United States. In particular, the
Company has not sold any of the securities offered under the US
Offering or the Foreign Offering, and there are no assurances that
the Company will complete the sale of any of the securities
offered. CONTACT: For further details, please visit the Company's
website at http://www.searchlightminerals.com/ or contact the
Investors Relations Department at: Ph: (702) 939-5247, Fax: (702)
939-5249, email: DATASOURCE: Searchlight Minerals Corp. CONTACT:
For further details, please visit the Company's website at
http://www.searchlightminerals.com/ or contact the Investors
Relations Department at: Ph: (702) 939-5247, Fax: (702) 939-5249,
email:
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