Business
Search Minerals Closes First Tranche of Private Placement and Announces Shares for Debt Transaction
VANCOUVER, British Columbia, Jan. 10, 2019 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce the closing o
About this update from Search Minerals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Jan. 10, 2019 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce the closing of the first tranche of its previously announced private placement. Further to its news release dated December 11, 2018 the Company has completed the first tranche of its non-brokered private placement (the “Offering”) raising gross proceeds of $100,000 by the issuance of 2,000,000 flow-through units (the “Units”) at $0.05 per Unit. Each flow-through unit comprised of a flow-through Common Share and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to purchase an additional common share at a price of $0.06 for a period of 24 months from the closing of the Offering. All Shares issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation. The Company will use the proceeds of the Offering to incur Canadian exploration expenses as defined in the Income Tax Act on the Deep Fox and other company's properties. Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. Shares for debt transaction The Company has negotiated certain amendments to the Exploration Activity Agreement between the Company and NunatuKavut Community Council Inc. (“NCC”) dated August 22, 2012 (the “Agreement”). Under the terms of the amending agreement, NCC has agreed to accept 500,000 units of the Company (the “Units”) at a deemed issue price of $0.05 per Unit in settlement of payments owing to NCC under the Agreement in the amount of $25,000 (the “Debt”). Each Unit will consist of one common share of the Company (a “Share”) and one common share purchase warrant of the Company (a “Warrant”). Each Warrant will entitle the holder to purchase one additional Share (a “Warrant Share”) at a price of $0.06 per Warrant Share for a period of 24 months. The Units will be issued concurrently with an additional 50,000 Shares due for issue under the original terms of the Agreement (the “Agreement Shares”). The Company decided to settle the Debt with Units in order...