VANCOUVER, Oct. 31, 2016 - 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.
Source: Search Minerals
