Vancouver (pcJ News Briefs) – Search Minerals Inc. (TSX-V: SMY) intends to close a non-brokered private placement of up to 34,000,000 units at $0.09 per unit for gross proceeds of up to $3,060,000.
Each unit will consist of one common share and one-half of one share purchase warrant with each whole warrant entitling the holder to purchase one additional common share at $0.18 per share for a period of twelve months from the closing.
Search Minerals will use the proceeds to complete a drilling program on the Deep Fox prospect (formerly called Deepwater Fox), to complete the environmental assessment applications and for general working capital requirements.
“Completion of metallurgical testing necessarily consumed much of our financial resources and management time. Also, Search was very focused on reaching settlement agreements with creditors, prior to our November 2016 audit year end, which reduced the majority of the corporate debt off the balance sheet. With a stronger balance sheet and the successful metallurgy, Search believes it is the right time to validate the District with the Deep Fox drill program. Dr. Randy Miller, Vice-President, Exploration, will use the Foxtrot-like geological model, developed from the Foxtrot resource drilling programs, to plan an efficient and cost effective drill program at Deep Fox. Since Deep Fox is a Foxtrot-like prospect, we expect the geology and mineralization there to fit the model. The funds from this private placement will be used to advance important and complementary aspects of our overall strategic plan in the following key areas as follows,” commented Greg Andrews, President & CEO.
Search Minerals Inc. is focused on finding and developing resources within the emerging Port Hope Simpson Critical Rare Earth Element (CREE) District of South East Labrador. 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.
photo credit: Search Minerals