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Search Minerals Announces Amendment to Previously Announced Shares for Debt Transaction
St. Lewis, Newfoundland and Labrador--(Newsfile Corp. - May 6, 2026) - Search Minerals Inc. (TSX...
About this update from Search Minerals Inc.
[{"type":"text","content":"Search Minerals Announces Amendment to Previously Announced Shares for Debt TransactionSt. Lewis, Newfoundland and Labrador--(Newsfile Corp. - May 6, 2026) - Search Minerals Inc. (TSXV: SMY) (OTC: SHCMF) (\"Search Minerals\" or the \"Company\") announces that, further to its news release dated February 20, 2026, in which the Company announced its intention to settle certain outstanding indebtedness through the issuance of common shares of the Company (the \"Shares for Debt Transaction\"), one of the creditors originally contemplated in the proposed transaction has elected not to proceed with the settlement of their indebtedness for common shares.As a result, the Company has amended the terms of the Shares for Debt Transaction and will now settle an aggregate of $185,000 of outstanding indebtedness through the issuance of 370,000 common shares of the Company at a deemed price of $0.50 per share, subject to acceptance by the TSX Venture Exchange (\"TSXV\").The indebtedness being settled represents bona fide accrued compensation owing to Non-Arm's Length Parties of the Company. The Shares for Debt Transaction has been structured in accordance with the policies of the TSXV, including the limitations applicable to the settlement of debt for services provided by Non-Arm's Length Parties.The common shares issued pursuant to the Shares for Debt Transaction will be subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable securities laws and the policies of the TSXV. Completion of the Shares for Debt Transaction remains subject to final acceptance of the TSXV.The Company believes that the Shares for Debt Transaction will help strengthen its financial position by reducing outstanding liabilities while preserving cash resources.RELATED PARTY TRANSACTIONThe Shares for Debt Transaction includes participation by insiders of the Company and therefore constitutes a \"related party transaction\" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\").The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the transaction does not ex...