HENDERSON, NV, Jan. 3 /CNW/ - Searchlight Minerals Corp. (OTC BB: SRCH)
(the "Company"), today announced that it has closed a private placement
financing for aggregate gross proceeds of $5,000,000.
The securities sold in this private placement were issued to the
Arlington Group Limited, a non-US investor as contemplated under Regulation S
of the Securities Act of 1933 (the "Securities Act"). The private placement
consisted of a total of 3,125,000 units sold at a price of $1.60 per unit.
Each unit consisted of one share of the Company's common stock and one-half of
one warrant, with each whole warrant entitling the holder to purchase one
additional share of common stock at a price of $2.40 per share for a period of
two years from the date of issuance. In addition, the Company will issue to
the Arlington Group Limited an additional 156,250 shares of common stock,
equal to 5% of the total number of units sold, for no additional consideration
as a commission. As a result, the Company issued to the Arlington Group
Limited a total of 3,281,250 shares of the Company's common stock and
1,562,500 share purchase warrants.
In addition to the private placement with the Arlington Group Limited,
the Company has approved private placement offerings for an additional
$5,000,000 in total potential gross proceeds. The first private placement
offering (the "US Offering") is for 1,875,000 units at a price of $1.60 per
unit, offered to "accredited investors" as defined in Regulation D of the
Securities Act of 1933 (the "Securities Act"), with the second private
placement offering (the "Foreign Offering") for 1,250,000 units at a price of
$1.60 per unit, offered to non-US persons as contemplated under Regulation S
of the Securities Act. The US Offering and the Foreign Offering are being made
by the Company on the same terms and conditions as the private placement with
the Arlington Group Limited.
The offering price for the private placement with the Arlington Group
Limited and the US and Foreign Offerings was set at a 10% discount to the
volume-weighted average share price of the Company's common stock during the
10 days prior to December 12, 2007, the date on which each of the above
offerings was approved by the Company's Board of Directors.
Clarkdale Slag Project Update
The Company continues to move forward on the construction, development
and implementation of its first production module at the Clarkdale Slag
Project. This first production module will consist of a full scale production
and processing circuit, expected to be able to process between 100 and
250 tons per day of slag material. Building construction/refurbishment is
nearing completion, and most of the major pieces of equipment have arrived on
site. It remains the Company's goal to have all components of the first full
production module installed and operating by the end of the first quarter in
2008, with the feasibility study beginning in the second quarter. If this
first production module proves to be economically feasible, the Company
intends to construct additional production modules that will operate in
concert with each other.
"The additional capital raised in the private placement with the
Arlington Group, and any additional capital raised under the US and Foreign
Offerings, will provide the Company with significant financial flexibility in
achieving its key 2008 goals," stated Ian McNeil, President and Chief
Executive Officer of Searchlight Minerals Corp. "Optimizing and establishing
the feasibility of the first production module, laying the groundwork for a
2,000 ton-per-day commercial production facility at the Clarkdale Slag
Project, and continuing the exploration program at the Searchlight Gold
Project continue to remain the Company's top priorities."
"We are very pleased with our continued progress towards the initial
production of precious and base metals at Clarkdale. Our operational team has
done a great job of advancing the project while facing long lead times in
acquiring certain equipment and managing with the shortage of other resources
in a resurgent mining industry. We expect to finish equipment installation,
plumbing and electrical work early in the current quarter. Our plans call for
the first production module to commence operating late in the first quarter,
and this will be followed by an independent verification of the commercial
feasibility of our metals extraction process beginning in the second quarter,"
About Searchlight Minerals Corp.
Searchlight Minerals Corp. is a dynamic mineral exploration company
focused on the acquisition and development of projects in the southwestern
United States. The Company is currently involved in two projects: (1) the
Clarkdale Slag Project, located in Clarkdale, Arizona, which seeks to recover
precious and base metals from the reprocessing of slag material produced from
the smelting of copper ores from former mines in the Jerome, Arizona area; and
(2) the Searchlight Gold Project, which involves exploration for precious
metals on mining claims near Searchlight, Nevada. The Clarkdale Project is the
more advanced of two ongoing projects that the Company is pursuing. The
Searchlight Gold Project is an early-stage gold exploration endeavor on
3,200 acres located approximately 50 miles south of Las Vegas, Nevada.
Searchlight Minerals Corp. is headquartered in Henderson, Nevada, and its
common stock is listed on the OTC Bulletin Board under the symbol "SRCH".
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the Company's securities. The securities sold under
the Offering have not been registered under the United States Securities Act
of 1933, as amended and may not be offered or sold within the United States or
to U.S. persons unless an exemption from such registration is available.
This Press Release may contain, in addition to historical information,
forward-looking statements. Statements in this news release that are
forward-looking statements are subject to various risks and uncertainties
concerning the specific factors disclosed under the heading "Risk Factors" and
elsewhere in the Company's periodic filings with the U.S. Securities and
Exchange Commission. When used in this news release, the words such as
"could," "plan", "estimate", "expect", "intend", "may", "potential", "should",
and similar expressions, are forward-looking statements. The risk factors that
could cause actual results to differ from these forward-looking statements
include, but are not restricted to the Company's limited operating history,
uncertainties about the availability of additional financing, geological or
mechanical difficulties affecting the Company's planned geological work
programs, uncertainty of estimates of mineralized material, operational risk,
environmental risk, financial risk, currency risk, dependence on joint venture
partners and other statements that are not historical facts as disclosed under
the heading "Risk Factors" and elsewhere in the Company's periodic filings
with securities regulators in the United States. In particular, the Company
has not sold any of the securities offered under the US Offering or the
Foreign Offering, and there are no assurances that the Company will complete
the sale of any of the securities offered.
For further information:
For further information: please visit the Company's website at
www.searchlightminerals.com or contact the Investors Relations Department at:
Ph: (702) 939-5247, Fax: (702) 939-5249, email: email@example.com