VANCOUVER, Oct. 26, 2016 /CNW/ - Search Minerals
Inc. (TSXV: SMY) ("Search" or the "Company")
announces that further to its press releases dated September 13, 2016 and October 11, 2016 it has increased the size of its
previously announced private placement (the "Private
Placement"). Due to the strong demand from potential
investors, the Company will now be proceeding with an offering of a
total of up to 12,800,000 units (the "Units") at
$0.07 per Unit for gross proceeds of
up to $896,000. On October 11, 2016, the Company announced that it
had closed the first tranche of the Private Placement raising gross
proceeds of $364,000 by the issuance
of 5,200,000 Units and the Company anticipates closing the
remaining portion of the Private Placement by November 8, 2016. Each Unit will
consist of one common share in the capital of the Company and one
share purchase warrant (a "Warrant"). Each Warrant
will entitle the holder to purchase one additional common share in
the capital of the Company (a "Warrant Share") at a price of
$0.14 per Warrant Share for a period
of twelve months from the closing of the Private Placement.
The Company will use the proceeds from the Private Placement to
complete environmental assessment applications and for general
working capital requirements.
Closing of the Private Placement is subject to a number of
conditions, including receipt of all necessary corporate and
regulatory approvals, including the approval of the TSX Venture
Exchange. No finder's fees or commissions are payable in
connection with the financing.
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 original 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
CREE's
Identified as Neodymium (Nd), Europium (Eu), Terbium (Tb),
Dysprosium (Dy) and Yttrium (Y) this valuable subset of the
complete series of 17 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 completion of the Private Placement and the
Consolidation. 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, the risk
that the Company is not able to find suitable investors for the
Private Placement or does not receive the approval of the TSX
Venture Exchange or the shareholders of Search.
Readers should not place undue reliance on the forward-looking
statements and information contained in this news release
concerning these times. Except as required by law, Search
does not assume any obligation to update the forward-looking
statements of beliefs, opinions, projections, or other factors,
should they change, except as required by law.
SOURCE Search Minerals Inc.