VANCOUVER, Oct. 4, 2016 /CNW/ - (TSXV: SMY) Search
Minerals Inc. ("Search" or the "Company") reports
that it has negotiated certain amendments to the Exploration
Activity Agreement between the Company and NunatuKavut Community
Council Inc. ("NCC") dated August 22,
2012 (the "Agreement").
Under the terms of the amending agreement, NCC has agreed to
accept 357,143 units of the Company (the "Units") at a
deemed issue price of $0.07 per Unit
in settlement of payments owing to NCC under the Agreement in the
amount of $25,000 (the
"Debt"). Each Unit will consist of one common share of the
Company (a "Share") and one common share purchase warrant of
the Company (a "Warrant"). Each Warrant will entitle the
holder to purchase one additional Share (a "Warrant Share")
at a price of $0.14 per Warrant Share
for a period of twelve months.
The Units will be issued concurrently with an additional 50,000
Shares due for issue under the original terms of the Agreement (the
"Agreement Shares").
Greg Andrews, President and CEO
comments: "We are very appreciative of the continued support by the
NunatuKavut Community Council for the development of the FOXTROT
Project. The guidance and support of NCC will be very helpful
as we commence the Environmental Assessment process necessary to
advance the FOXTROT Project and the Critical Rare Earth
District."
Todd Russell, President of NCC,
states: "We appreciate the time and effort that Search
Minerals has invested into building a positive relationship with
the NCC and our communities. They have been very diligent in their
work and have been respectful of the fact they are on our
Indigenous lands. The NCC looks forward to continuing to strengthen
its relationship with Search Minerals as the project
progresses."
The Company decided to settle the Debt with Units in order to
preserve its remaining cash for the environmental assessment
applications, operations and completion of the pilot plant.
The issuance of the Units and the Agreement Shares to NCC is
subject to the approval of the TSX Venture Exchange. All securities
issued will be subject to a four month hold period which will
expire on the date that is four months and one day from the date of
issue.
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
SE Labrador. 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 "Deepwater Fox" and "Fox Meadow"
as significant new CREE prospects very similar and in close
proximity to the FOXTROT discovery. While the Company has
identified more than 20 other prospects in the District, its
primary objective remains development of FOXTROT by confirming
proprietary processing technology at the pilot plant level (in
progress) 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.
All material information on the Company may be found on its
website at www.searchminerals.ca and on SEDAR at www.sedar.com
About NunatuKavut Community Council
The NunatuKavut Community Council (NCC) is the representative
governing body for approximately 6,000 Inuit of south and central
Labrador, collectively known as
the Southern Inuit of NunatuKavut. NunatuKavut means "Our Ancient
Land" in Inuktitut and is the traditional territory of the Southern
Inuit.
About CREE's
Identified as Neodymium (Nd), Europium (Eu), Terbium (Tb),
Dysprosium (Dy) and Yttrium (Y) this valuable subset of the
complete series of seventeen rare earth elements is considered
critical due to high demand and/or constrained domestic supply.
Containing unique properties which enhance the performance of a
range of innovative technologies, CREE's are essential components
in the development of permanent magnets and a variety of other
components used in renewable energy, green technology automobiles,
medical devices, electronics and agricultural production.
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 information"
and "forward-looking statements" (collectively "forward-looking
statements") within the meaning of applicable Canadian and
United States securities
legislation including the United States Private Securities
Litigation Reform Act of 1995. All statements, other than
statements of historical fact, included herein, without limitation,
statements relating the future operating or financial performance
of the Company, are forward-looking statements.
Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible", and similar
expressions, or statements that events, conditions, or results
"will", "may", "could", or "should" occur or be achieved.
Forward-looking statements in this news release relate to, among
other things future events or the Company's future performance,
business prospects or opportunities, including the completion of
the issuance of Units and Shares to NCC. Actual future
results may differ materially. There can be no assurance that
such statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such statements. Forward-looking statements reflect the
beliefs, opinions and projections on the date the statements are
made and are based upon a number of assumptions and estimates that,
while considered reasonable by the respective parties, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. Many
factors, both known and unknown, could cause actual results,
performance or achievements to be materially different from the
results, performance or achievements that are or may be expressed
or implied by such forward-looking statements and the parties have
made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation, 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.comor or the risk that Search does not receive the
approval of the TSX Venture Exchange. 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.