Business
Search Announces Shares for Debt Transaction
VANCOUVER, British Columbia, Dec. 17, 2019 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce that the Comp
About this update from Search Minerals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Dec. 17, 2019 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce that the Company 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 500,000 Shares of the Company (the “Shares”) at a deemed issue price of $0.05 per Share in settlement of payments owing to NCC under the Agreement in the amount of $25,000 (the “Debt”). The Shares will be issued concurrently with an additional 50,000 Shares due for issue under the original terms of the Agreement (the “Agreement Shares”). The Company decided to settle the Debt with Shares in order to preserve its cash for operations and the settlement of other obligations. The issuance of the Shares 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. Greg Andrews, President and CEO, comments; “We are very appreciative of our relationship with the NunatuKavut Community Council as a partner and shareholder of Search Minerals. We are working with all our stakeholders as we continue to develop the Critical Rare Earth Element District in SE Labrador. Search Minerals is well advanced and positioned to be a leader in the development of a North America rare earth supply chain.” 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 Critical Rare Earth Element (“CREE”) District of South East Labrador. The Company controls a belt 70 km long and 8 km wide including its 100% interest in the FOXTROT and DEEP FOX Projects, which are road accessible and at tidewater. Exploration efforts have advanced “Fox Meadow” as a new CREE prospect very similar to and in close proximity to FOXTROT and DEEP FOX. 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. The FOXTROT prelimi...