- 1,487,694 units (the “FT units“) at a price of $0.50 per FT unit for gross revenue of $743,847 (the “FT financing“). Each FT unit consisted of one flow-through ordinary share (a “FT share“) and one-half of one transferable, non-flow-through warrant for the purchase of common shares (each whole warrant, a “Deposit“). Each Warrant is exercisable until November 6, 2027 to acquire one non-flow-through common share of the Company at an exercise price of $0.65 per share. 620,002 of the FT Units were issued on a charitable basis through an agreement with Wealth Creation Preservation & Donation Inc.
- 303,030 ordinary shares (the “Shares offered“) on a non-flow through basis at a price of $0.33 per Offer Share for gross proceeds of $100,000 (the “Share financing” and together with the FT Financing, the “Financing“).
The gross proceeds from the FT Financing will be used by the Company to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenses,” as both terms are defined in the Income Tax Act (Canada) related to the company’s Foxtrot and Deep Fox projects in Labrador. The company also intends that such costs incurred will be eligible for the Critical Mineral Exploration Tax Credit. The net proceeds from the equity financing will be used by the Company for working capital and general corporate purposes.
In connection with the financings, the Company: (i) paid a total of $16,109.76 in cash finder’s fees to Mine Equities Ltd. and Canaccord Genuity Corp., representing 6% of the gross proceeds of the FT units sold to subscribers introduced by such parties; and (ii) an aggregate of 6,000 non-transferable common stock purchase warrants (the “Finder’s orders“) to Canaccord Genuity Corp., representing 6% of the FT Units sold to subscribers introduced by such party. Each Finder’s Warrant is exercisable to acquire one non-flow-through common share of the Company at an exercise price of $0.65 per share until November 6, 2027.
The financings are subject to final acceptance by the TSX Venture Exchange.
The FT Shares and Warrants comprising the FT Units and the Offer Shares, as well as the Common Shares issuable upon exercise of the Warrants and the Finder’s Warrants, are subject to a holding period under applicable Canadian securities laws, which expires on March 7, 2026.
About search minerals
Search Minerals is focused on exploring and developing critical rare earth elements (CREE) and transition metals zirconium (Zr) and hafnium (Hf) in the emerging Port Hope Simpson – St. Lewis CREE district in southeastern Labrador. The company operates two deposits (Foxtrot and Deep Fox), two drill-ready prospects (Fox Meadow and Silver Fox) and numerous other CREE prospects, including Fox Valley, Foxy Lady and Awesome Fox, along a 64-kilometre belt that forms a CREE district in Labrador.
Search Minerals also manages additional CREE assets in the Red Wine CREE district of central Labrador. These include: the drill-ready Two Tom Lake CREE-Be-Nb deposit, the Mann #1 CREE-Nb-Be prospect and Merlot CREE Prospect.
Forward-Looking Statements
Statements in this press release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation. In some cases, forward-looking information can be identified by the use of words and phrases or variations of such words and phrases or statements such as “anticipate,” “expect,” “plan,” “likely,” “believe,” “intend,” “predict,” “project,” “estimate,” “potential,” “may,” “may,” “will,” “would” or “should.” Forward-looking information contained in this press release is based on certain material assumptions and involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Search Minerals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include those discussed in Search Minerals’ public filings. Although Search Minerals has attempted to identify important factors that could affect Search Minerals and cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. For more information about these and other risks and uncertainties that may affect the Company’s business, see the Company’s Management’s Discussion and Analysis filed with certain Canadian securities regulators, which is available at www.sedarplus.ca. Except as required by law, Search Minerals assumes no obligation to release publicly any revisions to the forward-looking information contained in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273600
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