pcNewsWire – Search Minerals Inc. (TSX-V: SMY) has closed second tranche of its previously announced private placement, issuing 1,400,000 units at $0.09 per unit for gross proceeds of $126,000.
Search Closes Second Tranche of Private Placement
May 31st, 2017
Vancouver, B.C. May 31, 2017 – 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 release dated March 20, 2017 and May 5, 2017, the Company has completed the second tranche of its non-brokered private placement (the “Offering”) raising gross proceeds of $126,000 by the issuance of 1,400,000 units (the “Units”) at $0.09 per Unit. Each Unit consists of one common share in the capital of the Company (a “Share”) and one-half of 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 $0.18 per Warrant Share for a period of 12 months from the closing of the Offering. In total, the Company has issued an aggregate of 5,022,166 Units under both tranches of the Offering for gross proceeds of $451,994.94.
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 Company will use the proceeds from the Offering to complete a drilling program on the Deep Fox prospect (formerly called Deepwater Fox), to complete the environmental assessment applications and for general working capital requirements. The aggregate gross proceeds of the Offering will be allocated as 1) $ 1,000,000 for the environmental application process and general working capital, and 2) up to $ 2,060,000 will be used for the Deep Fox drill program and other exploration in the District.
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.
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.
All material information on the Company may be found on its website at www.searchminerals.ca and on SEDAR at www.sedar.com
About neo-CREOs ( Adamas Intelligence – December 2016)
We consider neodymium, praseodymium, and dysprosium to be neo-CREOs and they are vital to NdFeB magnets used widely in renewable power generation, electric mobility, and energy-efficient technologies. We consider terbium to be a neo-CREO because upon experiencing shortages of dysprosium, consumers in the magnet industry will rapidly consume available terbium supplies in its place for applications involving renewable power generation, electric mobility and energy efficient technologies. Lanthanum is considered a neo-CREO because it is widely used in catalytic converters and rechargeable batteries, and will be increasingly used as a thermal stabilizer by producers of poly-vinyl chloride (PVC) to minimize lead consumption and improve the energy efficiency of PVC and other processing equipment.
For further information, please contact:
President and CEO
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SOURCE: Search Minerals Inc.