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Search Minerals Announces $200,000 Funding and Provides Update on Convertible Debenture
VANCOUVER, British Columbia, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Search Minerals Inc. (“Search” or the “Company”) (TSXV: SMY), is pleased to announce that InCoR H
About this update from Search Minerals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Search Minerals Inc. (“Search” or the “Company”) (TSXV: SMY), is pleased to announce that InCoR Holdings PLC (“InCoR”) has agreed to lend the Company an additional CDN $200,000, which will be used for general working capital purposes. The loan is a non-interest bearing demand loan and will be secured by the existing security package given by the Company and its subsidiary in favor of InCoR in connection with the secured convertible debentures issued to InCoR on September 28, 2017 (the “September Debenture”) and October 27, 2017 (the “October Debenture”), in the amounts of $150,000 and $350,000, respectively. The October Debenture was not converted and matured on October 27, 2018, at which time it became repayable in cash. As the Company pursues a refinancing of both the September Debenture and the October Debenture, InCoR has agreed to forbear taking any action under both the September Debenture and the October Debenture or the related security agreements for duration of the period beginning September 29, 2018, and ending on November 30, 2018. As consideration for this forbearance the Company has agreed to pay InCoR a forbearance fee in the amount of CDN $ 20,000.00 which is payable at the end of the forbearance period. The foregoing constitute “related party transactions” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) because InCoR is a “Control Person” of the Company. The Company is relying on the exemptions from the formal valuation and minority approval requirements in Sections 5.5.(a) and 5.7(1)(a) of MI 61-101, on the basis that the fair market value of the transactions does not exceed 25% of the Company’s Market Capitalization. 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 Port Hope Simpson Critical Rare Earth Element (“CREE”) District of South East Labrador (the “District”). The Company controls a belt 70 km long and 8 km wide including its 100% interest in the FOXTROT Project, which is road accessible and at tidewater. Exploration efforts have advanced “Deep Fox” and “Fox Meadow” as significant new CREE prospects very similar to and in close proximity to...