Business
Search Minerals Annouces Termination of Proposed Acquisition of MSFA
TORONTO , July 16, 2014 /CNW/ - Search Minerals Inc. (" Search " or the " Company ") (TS...
About this update from Search Minerals Inc.
[{"type":"text","content":"\n\n\nTORONTO, July 16, 2014 /CNW/ - Search Minerals Inc. (\"Search\" or the \"Company\") (TSXV: SMY) today announced that it has delivered notice of\n termination of the Share Purchase Agreement dated January 22, 2014\n among Search, Brasilis Kaduna Consultoria e Participações Ltda. and MS\n Marpin Consultoria e Participações Ltda. (the \"Purchase Agreement\") pursuant to which the Company had proposed to acquire the outstanding\n quotas of Mineração São Francisco de Assis Ltda. (\"MSFA\"). The Purchase Agreement was originally announced by the Company in a\n press release dated January 27, 2014 (see: \"Search Minerals Announces Reverse Takeover Acquisition of Mineração São\n Francisco de Assis Ltda.,\" January 27, 2014).\n\n\nSearch has determined that it is necessary to terminate the Purchase\n Agreement as certain conditions of the transaction have not been\n satisfied in a timely manner as required pursuant to the Purchase\n Agreement. The termination is effective July 15, 2014.\n\n\nStephen Keith, President and CEO of Search, commented \"We still strongly\n believe in Search's fundamental strategy which focuses on critical\n metals with strong market fundamentals, growing demand and restricted\n supply. As such, we continue to pursue other transactions in the tin\n sector, focusing on assets that can be fast-tracked to production.\n Management and the Board of Directors feel that continuing to pursue\n the acquisition of MSFA, as structured, would not be in favour of\n Search's shareholders, and we do not wish to remain halted as we pursue\n new opportunities and partnerships. This was a very difficult decision\n for the Company, but one that we made with a view towards shareholders'\n value and future growth.  In the context of today's difficult markets,\n the MSFA transaction became too dilutive to Search's existing\n shareholders and did not recognize the substantial progress we've made\n at our Foxtrot Rare Earth Project. As we work to develop our corporate\n strategy, Search will continue actively pursuing its work on building\n out a strong rare earth asset and we expect to report on its\n development shortly\".\n\n\nTRADING HALT\n\n\nTrading in the Search Shares has been halted since August 20, 2013\n following the initial announcement by the Company of the prop...