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Search Minerals Closes Flow Through Private Placement and Shares for Debt Transaction and Extends Convertible Debenture
VANCOUVER, British Columbia, Jan. 13, 2020 (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. 13, 2020 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce the closing of its previously announced private placement. Further to its news release dated November 20, 2019, the Company completed its non-brokered private placement (the “Offering”) for aggregate gross proceeds of $70,000 and issued 1,400,000 flow-through common shares (the “FT Shares”) at a price of $0.05 per FT Share. All FT 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 gross proceeds of the Offering to incur “Canadian exploration expenses” as defined in the Income Tax Act (Canada) on the Company's Deep Fox project in the Critical Rare Earth Element District of South East Labrador (the “District”) and other exploration work in the District. 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 (the “Exchange”). Shares for DebtFurther to the Company's news release dated December 17, 2019, the Company completed a shares for debt transaction after receiving the approval of the Exchange to settle indebtedness with NunatuKavut Community Council Inc. (“NCC”). The Company and NCC entered into an amending agreement dated December 16, 2019 to amend the terms of the Exploration Activity Agreement dated August 22, 2012 (the \"Agreement\"), pursuant to which NCC agreed to accept 500,000 common shares of the Company (the “Shares”) at a deemed issue price of $0.05 per Share in settlement of payments owing to NCC under the Agreement in the amount of $25,000 (the “Debt”). The Shares will be issued concurrently with an additional 50,000 Shares due for issue under the original terms of the Agreement. The Company decided to settle the Debt with the issuance of Shares in order to preserve its remaining cash for operations and the settlement of other obligations. All securities issued will be subject to a four month hold period which will expire on the date that is four months and one day from the date of issue. Extension of Convertible DebentureFurther to the Company's ...