Search Minerals Inc. Announces Debt Consolidation and Refinancing
Search Minerals Inc. Announces Debt Consolidation and Refinancing
VANCOUVER, B.C., Nov. 30, 2018 -- (TSXV: SMY) Search Minerals Inc. (“Search” or the “ Company”) is pleased to
announce that it has consolidated and refinanced its existing secured debt in the aggregate amount of $850,000 through the
issuance of a non-brokered secured convertible debenture (“ Debenture”) to InCoR Holdings Plc (“ InCoR”). As previously
announced in a news release dated September 7, 2017, InCoR has previously provided funding of $500,000 by way of
Debentures. As further announced by news releases dated October 4, 2018, and, November 8, 2018, InCoR has additionally
provided funding to the Company in the amounts of $150,000 and $200,000, respectively.
The Debenture will have 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, in cash or, at InCoR’s option, payable in common shares.
Prior to the maturity date, 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 and one Common Share purchase warrant (a “Warrant ”) with each Warrant entitling the holder thereof to
acquire one additional Common Share at an exercise price of $0.06 per Common Share for five years from the date of
issuance. The Debenture is 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.
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.
The Debenture and any securities issued on its conversion will be subject to a statutory hold period of four months and one
day from the Closing Date. Completion of the financing is subject to the approval of the TSX Venture Exchange (the “TSXV”).
About Search Minerals
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 the original FOXTROT discovery. While the Company has identified more
than 20 other prospects in the District, its primary objective remains development of FOXTROT. The delineation of additional
resources will support competitive-low cost production beyond the 14-year mine life outlined in the FOXTROT PEA (April
2016.) The FOXTROT Project has a low capital cost to bring the initial project into production ($152 M), a short payback period
and is scalable due to Search’s proprietary processing technology.
The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them to be categorized as
mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. The preliminary
economic assessment includes the results of an economic analysis of mineral resources. Mineral resources are not mineral
reserves and do not have demonstrated economic viability.
All material information on the Company may be found on its website at www.searchminerals.ca and on SEDAR at
www.sedar.com
About neo-CREOs (Adamas Intelligence – November 2017)
We consider neodymium, praseodymium, and dysprosium to be neo-CREOs and they are vital to NdFeB magnets used
widely in renewable power generation, electric mobility, and energy-efficient technologies. We consider terbium to be a neo-
CREO because upon experiencing shortages of dysprosium, consumers in the magnet industry will rapidly consume available
terbium supplies in its place for applications involving renewable power generation, electric mobility and energy efficient
technologies. Lanthanum is considered a neo-CREO because it is widely used in catalytic converters and rechargeable
batteries, and will be increasingly used as a thermal stabilizer by producers of poly-vinyl chloride (PVC) to minimize lead
consumption and improve the energy efficiency of PVC and other processing equipment.
For further information, please contact:
Greg Andrews
President and CEO
Tel: 604-998-3432
E-mail: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this
restriction may constitute a violation of U.S. securities laws.
Cautionary Statement Regarding “Forward-Looking” Information.
This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking
statements”) within the meaning of applicable Canadian and United States securities legislation including the United States
Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein,
without limitation, statements relating the future operating or financial performance of the Company, are forward-looking
statements.
Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”,
“intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”,
“may”, “could”, or “should” occur or be achieved. Forward-looking statements in this news release relate to, among other
things, advancement of the Company’s Foxtrot Project, environmental assessment results, results from public consultations,
provincial studies and the completion of environmental studies. Actual future results may differ materially. There can be no
assurance that such statements will prove to be accurate, and actual results and future events could differ materially from
those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the
statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the
respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and
contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be
materially different from the results, performance or achievements that are or may be expressed or implied by such forward-
looking statements and the parties have made assumptions and estimates based on or related to many of these factors.
Such factors include, without limitation, public consultations drastically change the Guidelines, the refusal of the provincial
and federal government to cooperate during the assessment process and the results of the environmental assessment are not
favourable to the Company. Readers should not place undue reliance on the forward-looking statements and information
contained in this news release concerning these times. Except as required by law, the Company does not assume any
obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.