VANCOUVER, British Columbia, Oct. 25, 2017 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV:SMY) (“Search” or the “Company”) announces that, further to its news releases dated August 3, 2017 and September 7, 2017, respectively, the Company intends to complete the non-brokered private placement of up to 10,000,000 flow through shares of the Company (each, a “Share”) at a decreased price of $0.05 per Share to raise gross proceeds of up to $500,000 (the “Offering”). The Shares are being re-priced in order to more accurately reflect the current market price of the Company’s shares.
All Shares issued under the Offering will be subject to a statutory hold period of four months from the date of issuance, in accordance with applicable securities legislation. The Company intends to close the Offering by no later than November 30, 2017. 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.
Insiders of the Company have subscribed for Shares under the Offering. The issuance of Shares to insiders pursuant to the Offering (the “Insider Participation”) will be considered to be a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). 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(b) and 5.7(1)(b) of MI 61-101 in respect of any Insider Participation.
Greg Andrews, President and CEO states: “The recent convertible debenture funding along with this re-priced private placement, will allow Search to ramp up for the 2000m Deep Fox drill program. The access road to the Deep Fox drill sites has been completed and we expect the drilling to commence around November 15, 2017. These expenditures for the Deep Fox drilling are eligible for the Junior Exploration Assistance program (“JEA”). The JEA Program and the support of the Department of Natural Resources has played an important role for Search and has enabled us to continue to explore our District in Newfoundland and Labrador and we truly appreciate that support. The grant is available for up to $225,000 on eligible expenditures over $300,000.”
Andrews added: “Search first discovered Deep Fox in 2015 with a comprehensive channel sampling program. In anticipation of the drill program, Search tested the material from Deep Fox at SGS Canada and the metallurgical results yielded the following recoveries in our key rare earth elements (90.8% Nd, 90.5% Pr, 81.3% Dy and 82.5% Terbium (Tb). The compelling reasons to drill the Deep Fox property remain: 1) Deep Fox has shown higher grades on surface of the key rare earth elements (Nd, Pr, Dy, Tb), 2) it has a similar strike length to Foxtrot but larger widths, 3) it displays better extraction results to those achieved on the Foxtrot material, and, 4) definition of a second resource supports the district concept.”
Deep Fox Drill Program
For some time Search has been pointing to the upside potential of this prospect (previously called Deepwater Fox). The 2015 Channel program (See Search News Release – dated October 15, 2015 – Search Minerals announces expansion of the Deepwater Fox “Critical REE” prospect in the Port Hope Simpson REE District”) determined that surface mineralization has similar length, is wider and has shown higher grades than the surface mineralization at the Foxtrot Resource.
Also, during the recently completed pilot plant operation and associated testing, it was confirmed that the Deep Fox material would provide similar or better extraction results as those achieved on the Foxtrot material. (See Search News Release – dated April 5, 2017 – Search Minerals achieves high rare earth elements extraction from Deep Fox mineral sample”).
A 2,000 metre drill program would provide Search with approximately 13 holes, ranging from 25m to 100m intersections. A successful drill program is expected to confirm that the geological model at Deep Fox is similar to that observed at Foxtrot. At Foxtrot, drilling confirmed a close correspondence between surface channel geology/assays and drill core geology/assays down to at least 400m intersections.
The drill program is expected to be completed in 30 - 45 days. Assays results and analysis should be available in up to 6 weeks following completion of the drill program.
Final Tranche of Debenture Financing
Further to the Company’s news releases dated September 7, 2017 and October 2, 2017, respectively, the Company expects the final tranche of its previously announced debenture financing, in the amount of $350,000, to close by October 30, 2017 (the “Debenture Financing”).
Expiry of Investor Relations contract
The investor relations consulting agreement between the Company and Pilot Communications expired on August 31, 2017.
Qualified Person:
Dr. Randy Miller, Ph.D., P.Geo, is the Company's Vice President, Exploration, and Qualified Person (as defined by National Instrument 43-101) who has supervised the preparation of and approved the technical information reported herein. The Company will endeavour to meet high standards of integrity, transparency, and consistency in reporting technical content, including geological and assay (e.g., REE) data.
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 South East Labrador (the “District”). 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 “Deep Fox” and “Fox Meadow” as significant new CREE prospects very similar and in close proximity to the original FOXTROT discovery. While the Company has identified more than 20 other prospects in the District, its primary objective remains development of FOXTROT with the clearly demonstrated success of the proprietary processing technology at the pilot plant level 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. The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. The preliminary economic assessment includes the results of an economic analysis of mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
