Search Minerals to Receive $5 Million in funding from the Government of Canada under the Critical Minerals Research Development & Demonstration Program
Search Minerals to Receive $5 Million in funding from the Government of
Canada under the Critical Minerals Research Development & Demonstration
Program
VANCOUVER, British Columbia, March 07, 2023 -- Search Minerals Inc. (“Search Minerals”) (TSXV: SMY | OTCQB:
SHCMF) is pleased to announce that the Government of Canada has contributed $5 million in non-dilutive support to Search
Minerals via a Contribution Agreement which will be used to fund the construction and operation of a demonstration plant for
rare earth extraction and recovery. The total project cost is estimated at approximately $9.3 million with a further $1 million of
funding under application from other sources. Search Minerals’ contribution to the construction costs is expected to be
approximately $3.3 million.
The demonstration plant will process ~20 tonnes of rare earth concentrate prepared from 72 tonnes of Deep Fox and Foxtrot
mineralization using Wet High Intensity Magnetic Separation (Search Minerals News Release dated September 16, 2022). The
work will be completed by SGS Canada and completion of the program is expected in early 2024.
The funding of the demonstration plant helps Search Minerals to:
• Confirm application of the Direct Extraction Process to the rare earth concentrate materials
• Obtain engineering data for feasibility study completion, expected in 2024
• Prepare ~1 tonne of high purity mixed rare earth carbonate precipitate to be used to validate separation of individual rare
earth products
“These funds will help us to move toward a bankable feasibility study assessment of rare earth mining, extraction and
separation in the province of Newfoundland and Labrador,” said Chairman and Interim President and CEO Leo Power. “The
demand for “magnet” rare earth elements such as neodymium, praseodymium, dysprosium and terbium is increasingly rapidly
driven by the demand for permanent magnets, for electric vehicle traction motors, wind turbines for power generation and for
robots. This demonstration plant program will position Search as a reliable provider of rare earth materials to support a
Canadian and North American supply chain for these critical materials.”
Mr. Power added, “We thank Natural Resources Canada, the Government of Canada and our other financial supporters for
helping to fund this critical step in the transition of Search from explorer to developer.”
The Honourable Jonathan Wilkinson, Minister of Natural Resources Canada, said, “ Canadian innovators are leading the way
towards a cleaner future. Today’s investment of $5 million in Search Minerals will help to advance the development of a
dynamic and competitive critical minerals sector through the development and demonstration of innovative processing
technologies. This means good jobs for workers, more investment in Canadian innovation, and lower emissions across the
country — all part of our plan to build a cleaner Canada and a prosperous, sustainable economy that works for everyone.”
Search Minerals is also working on establishing an important collaboration agreement with Memorial University and the
College of the North Atlantic to support the Demonstration Plant project and to build capacity and knowledge in rare earth
processing in Newfoundland and Labrador and Canada.
About Search Minerals Inc.
Search Minerals is focused on finding and developing Critical Rare Earths Elements (CREE), Zirconium (Zr) and Hafnium (Hf)
resources within the emerging Port Hope Simpson – St. Lewis CREE District of South East Labrador. Search controls two
deposits (Foxtrot and Deep Fox), two drill ready prospects (Fox Meadow and Silver Fox) and numerous other REE prospects,
including Fox Valley, Foxy Lady and Awesome Fox, along a 64 km long belt forming a REE District in Labrador. Search has
completed a preliminary economic assessment report for DEEPFOX and FOXTROT. Search is also working on three
exploration prospects along the belt which include: FOX MEADOW, SILVER FOX and AWESOME FOX.
Search Minerals has continued to optimize our patented Hydrometallurgy Direct Extraction Process technology with the
support from the Department of Industry, Energy and Technology, Government of Newfoundland and Labrador, and from the
Atlantic Canada Opportunity Agency. We have completed two pilot plant operations and produced highly purified mixed rare
earth carbonate concentrate and mixed REO concentrate for separation and refining. We also recognize the continued support
by the Government of Newfoundland and Labrador for its Junior Exploration Program.
Search Minerals was selected to participate in the Government of Canada Accelerated Growth Service (“AGS”) initiative, which
supports high growth companies. AGS, as a ‘one-stop shop’ model, provides Search with coordinated access to Government
of Canada resources as Search continues to move quickly to production and contribute to the establishment of a stable and
secure rare earth element North American and European supply chain.
For further information, please contact:
Leo Power Dr. David Dreisinger
Chairman of the Board Director and Vice President of Metallurgy
709-682-3543 604-613-4434
E-mail: [email protected] 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.
Cautionary Statement Regarding “Forward-Looking” Statements:
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the
applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news
release. "Forward-looking information" in this news release includes information about the Company’s exploration and
development plans and the timing thereof, and other forward-looking information. Factors that could cause actual results to
differ materially from those described in such forward-looking information include, but are not limited to, results of exploration
work, the ability to secure any required funding, receipt of all required regulatory approval and the ability to secure the
necessary resources to complete the planned exploration work.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the
Company based on information currently available to the Company. In connection with the forward-looking information
contained in this news release, the Company has made assumptions about the Company's financial condition and
development plans do not change as a result of unforeseen events, and that the Company will receive all required regulatory
approvals.
Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-
looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such
information due to the inherent uncertainty therein. The Company does not assume any obligation to update the forward-
looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking
statements, unless and until required by applicable securities laws. Additional information identifying risks and uncertainties is
contained in the Company's filings with the Canadian securities regulators, which filings are available at www.sedar.com.