VANCOUVER, Aug. 18, 2015 /CNW/ - (TSXV: SMY) Search Minerals Inc. ("Search" or the "Company") is pleased to announce the closing of the second and final tranche of its previously announced private placement (the "Offering") raising gross proceeds in the second tranche of $192,200 by the issuance of 3,203,334 units (the "Units") at $0.06 per Unit. Each Unit consists of one common share in the capital of the Company 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 $0.10 per Warrant Share for a period of 24 months from the closing of the Offering. In total, the Company has raised $669,200 in both tranches of the Offering by the issuance of 11,153,334 Units.
The Company will use the total proceeds from the Offering as follows:
- Complete channel sampling work program at the new Deepwater Fox prospect;
- Prepare updated preliminary economic assessment report using the information contained in the recent engineering study (see "Search Minerals Receives Independent Engineering Study For Processing Facility In SE Labrador," June 16, 2015) and including information from Search's proprietary metallurgical process (see "Search Minerals Announces Successful Scale Up of Proprietary Metallurgical Process to Produce 98.9% Purity Rare Earth Oxide Product," Feb. 2, 2015);
- To maintain its rare-earth properties in the Port Hope Simpson CREE District; and
- For general working capital.
All securities issued in the second tranche of the Offering are subject to a statutory hold period expiring on December 18, 2015, in accordance with applicable securities legislation.
Directors and officers of the Company acquired Units under the Offering. Such participation is considered to be a "related party transaction", as defined under 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 such insider participation.
Greg Andrews, President, "Search's exploration crew has just completed the channelling program at the Deepwater Fox Prospect. This program consisted of a total of 15 channels and just over 1200 total assay samples. Assay results are pending and should be available in September. The exploration program is now focused on maintenance work in the Port Hope Simpson, Henley Harbour and Red Wine area. We continue to work towards developing our Port Hope Simpson Critical Rare Earth Element ("CREE" - Nd, Eu, Tb, Dy, Y) District in SE Labrador."
Search is a TSX Venture Exchange listed company focused on creating value through finding and developing "critical rare earth element ("CREE")" mineral assets in Labrador. CREEs (Nd, Eu, Tb, Dy, Y) have growing demand, constrained or restricted supply and are commonly used in innovative technologies.
Search is the discoverer of the Port Hope Simpson CREE District, a highly prospective CREE belt located in southeast Labrador, where the Company controls a belt 70 km long and up to 8 km wide. Search owns 100% of the advanced CREE resource called the Foxtrot Project ("Foxtrot"), and a recently announced Foxtrot-like prospect called "Deepwater Fox". In addition, the Company has identified more than 20 other Foxtrot-like prospects in the District. The primary focus of Search is to continue to advance the Foxtrot resource, while evaluating other Foxtrot-like prospects. Several of the Foxtrot-like prospects require exploration drilling programs and may provide additional resources to a central processing facility that would be situated within the District.
In addition, Search holds a number of other CREE mineral prospects in Labrador in its portfolio, including claims in the Red Wine Complex, in the Henley Harbour area and in the Strange Lake Complex (where Quest Rare Minerals has a Joint Venture with Search) .
Search Minerals is led by a Management Team and Board of Directors with proven track records in the mining industry. The Company also has experienced geological and metallurgical teams led by Dr. Randy Miller and Dr. David Dreisinger respectively.
All material information on the Company may be found on its website at searchminerals.ca and on SEDAR at sedar.com.
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.
Cautionary Statement Regarding "Forward-Looking" Information.
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; and those additional risks set out in Search's public documents filed on SEDAR at www.sedar.com. Although Search believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Search disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Search Minerals Inc.
For further information: Greg Andrews, President, T: 604-998-3432; F: 604-608-5717, E: firstname.lastname@example.org