VANCOUVER, Sept. 13, 2016 /CNW/ - Search Minerals Inc.
(TSXV: SMY) ("Search" or the "Company") announces
a non-brokered private placement (the "Private Placement")
offering 8,000,000 units (the "Units") at $0.07 per Unit for gross proceeds of CDN
$560,000. Each Unit will consist of
one (1) common share in the capital of the Company and one share
purchase warrant (a "Warrant"). Each Warrant will
entitle the holder to purchase one (1) additional common share in
the capital of the Company (a "Warrant Share") at a price of
$0.14 per Warrant Share for a period
of twelve (12) months from the closing of the Private
Placement.
The Company will use the proceeds from the Private Placement to
complete environmental assessment applications; and for general
working capital requirements.
Greg Andrews, President and CEO
states: "These last few months have been extremely busy for Search
as we updated our preliminary economic assessment, initiated the
development and testing of our pilot plant, concluded another
successful exploration season and continued to advance discussions
with potential strategic partners for development of the FOXTROT
Project. In the coming months, we look forward to receiving
critical engineering data, a mixed rare earth concentrate and other
valuable information from the $1.9M
pilot plant, which was made possible with the support of
$1.25M co-funding from Atlantic
Canada Opportunities Agency and the Research and Development
Corporation of Newfoundland and
Labrador. This information will be instrumental with respect
to negotiating terms with potential strategic partners and /or
offtake agreements."
Closing of the Private Placement is subject to a number of
conditions, including receipt of all necessary corporate and
regulatory approvals, including the approval of the TSX Venture
Exchange. No finder's fees or commissions are payable in
connection with the financing.
About Search Minerals Inc.
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 SE
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. Exploration efforts have advanced
"Deepwater Fox" and "Fox Meadow" as significant new CREE prospects
very similar and in close proximity to the FOXTROT discovery. While
the Company has identified more than 20 other prospects in the
District, its primary objective remains development of FOXTROT by
confirming proprietary processing technology at the pilot plant
level (in progress) and delineation of prospects that will ensure
competitive-low cost production beyond the 14-year mine life
contemplated in the preliminary economic assessment of FOXTROT
completed in 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.
All material information on the Company may be found on its
website at www.searchminerals.ca and on SEDAR at www.sedar.com
About CREE's
Identified as Neodymium (Nd), Europium
(Eu), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y) this valuable
subset of the complete series of seventeen rare earth elements is
considered critical due to high demand and/or constrained domestic
supply. Containing unique properties which enhance the performance
of a range of innovative technologies, CREE's are essential
components in the development of permanent magnets and a variety of
other components used in renewable energy, green technology
automobiles, medical devices, electronics and agricultural
production.
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"
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 completion of the Private Placement and the
Consolidation. 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, the risk
that the Company is not able to find suitable investors for the
Private Placement or does not receive the approval of the TSX
Venture Exchange or the shareholders of Edgewater.
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,
Edgewater does not assume any
obligation to update the forward-looking statements of beliefs,
opinions, projections, or other factors, should they change, except
as required by law.
SOURCE Search Minerals Inc.