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Search Minerals announces closing of non-brokered financing, issuance of shares-for-debt and warrant extension application
TORONTO , Feb. 10, 2014 /CNW/ - Search Minerals Inc. ("Search" or the "Company") (TS...
About this update from Search Minerals Inc.
[{"type":"text","content":"\n\n\nTORONTO, Feb. 10, 2014 /CNW/ - Search Minerals Inc. (\"Search\" or the \"Company\") (TSXV: SMY) is pleased to announce that it has closed the second and\n final tranche of a non-brokered private placement (the \"Private Placement\"). Pursuant to the second tranche, the Company issued an aggregate of\n 3,695,382 units (the \"Units\") at a price of C$0.07 per Unit for gross proceeds of C$258,767.70.\n Including Units sold pursuant to the first tranche of the Private\n Placement, the Company issued a total of 8,906,464 Units for aggregate\n gross proceeds of approximately C$623,450.\n\n\nEach Unit is comprised of one common share of the Company and one-half\n of one common share purchase warrant, with each whole common share\n purchase warrant (a \"Warrant\") entitling the holder to purchase an additional common share (a \"Warrant Share\") at a price of $0.10 for a period of 24 months from the closing of the\n Offering.\n\n\nA Control Person (as that term is defined under the policies of the TSX\n Venture Exchange) of the Company has acquired Units pursuant to the\n financing. All securities issued pursuant to the financing are subject\n to a four-month re-sale restriction.\n\n\nISSUANCE OF SHARES FOR DEBT\n\n\nIn addition to the cash proceeds from the offering, Search has agreed to\n settle an aggregate of $121,250 of indebtedness owed to certain\n directors and officers of the Company through the issuance of an\n aggregate of 1,732,412 common shares at a deemed issuance price of $0.07 per common share.  All\n common shares issued in connection with the shares for debt transaction\n are subject to a four-month statutory hold period.  The transaction\n remains subject to final TSX Venture Exchange (\"TSXV\") approval.\n\n\nPursuant to Multilateral Instrument 61-101 - Protection of Minority\n Security Holders in Special Transactions (\"MI 61-101\"), the shares for debt transaction and the purchase of Units by an\n insider pursuant to the Private Placement constitute \"related party\n transactions\" as related parties will receive 1,732,412 common shares of the Company in connection with the debt settlement and\n have purchased an aggregate of 2,200,000 Units pursuant to the second\n tranche of the Private Placement.  The Company is relying on exemptions\n from the formal valuation and minority approval requireme...