Business
Search Minerals Announces Debenture Financing and Shares for Debt Transaction
VANCOUVER, British Columbia, June 10, 2020 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce a non-brokere
About this update from Search Minerals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, June 10, 2020 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce a non-brokered secured convertible debenture (“Debenture”) private placement (the “Private Placement”) for gross proceeds of $500,000. The Debenture has a maturity date of one year from the date of issuance and will bear simple interest at a rate of 15% per annum, calculated and paid semi-annually. The Debenture will be convertible into units (“Units”) of the Company at a conversion price of $0.05 per Unit, all in accordance with the terms set forth in the certificate representing the Debenture. Each Unit will be comprised of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”), with each Warrant entitling the holder thereof to acquire one additional Share (a “Warrant Share”) at an exercise price of $0.05 per Warrant Share for five years from the date of conversion of the Debenture. The Debenture will be secured by a general security agreement over all of the Company’s assets and a share pledge agreement pursuant to which the Company has pledged all the shares of its wholly owned subsidiary Alterra Resources Inc. InCoR Holdings PLC, who already has security over the Company’s assets has agreed to enter into an inter-creditor agreement so their security will rank pari passu with the subscriber. In addition, the Company has agreed to settle the interest payment due to InCoR Holdings PLC. as at May 31, 2020, in the amount of $69,308.22, with the issuance of 1,386,164 Common Shares of the Company, at a deemed price of $0.05 per Share, The Company decided to settle this debt with Shares in order to preserve its remaining cash for operations. All securities issued pursuant to the Private Placement and Shares for Debt will be subject to a statutory hold period of four months from the date of issuance, in accordance with applicable securities legislation. Completion of the Private Placement and Shares for Debt is subject to the approval of the TSX Venture Exchange. 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 63 k...