VANCOUVER, Sept. 30, 2015 /CNW/ - (TSXV: SMY) Search Minerals Inc. ("Search" or the "Company") is pleased to announce that Search and InCor Technologies Limited ("InCor") have amended the Patent Purchase Agreement (the "Agreement") dated November 13, 2013. The amendment will have InCor provide Search with a payment of CDN$650,000 which will fully satisfy and discharge InCor from any further obligation under the Agreement. The payment schedule will consist of $ 250,000 at closing, $200,000 on December 31, 2015 and $ 200,000 on February 28, 2016.
Concurrent with this transaction, InCor's parent company, InCor Holdings PLC ("InCor Holdings"), will subscribe for 5,000,000 units of the Company at a price of CDN$0.07 per unit (the "InCor Financing"), each unit to consist of one common share of Search (a "Search Share") and one common share purchase warrant of Search, each such warrant exercisable to purchase one Search Share at a price of CDN$0.10 for a period of two years following the closing date of the InCor Financing (the "Closing Date"). These funds will be used for general working capital purposes.
All securities issued pursuant to the InCor Financing will be subject to a statutory hold period of four months and one day from the Closing Date. Completion of the InCor Financing and the amendment of the Agreement are subject to the approval of the TSX Venture Exchange (the "TSXV").
Greg Andrews, President, states "We are delighted to be able to continue to finance the Company's Critical Rare Earth Element assets in Labrador with this substantial infusion of funds into Search Minerals with minimal dilution to existing shareholders. The negotiated $ 650,000 early settlement will replace uncertain and conditional future payments against the existing promissory note of $ 2,000,000."
Search is a TSXV-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.
Search 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.
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. These forward looking statements relate to future events or the Company's future performance, business prospects or opportunities including, without limitation, statements relating to the completion of the InCor Financing and the amendment of the Agreement. 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: [email protected]