Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) has completed its previously announced shares-for-debt transaction, issuing 370,000 common shares at a deemed price of $0.50 per share to settle $185,000 of outstanding indebtedness. The transaction, conducted in accordance with TSX Venture Exchange policies, fully satisfies and extinguishes the debt. The issued shares are subject to a statutory hold period of four months and one day from issuance, and the transaction remains subject to final acceptance by the TSX Venture Exchange.
This debt settlement allows Search Minerals to reduce its liabilities and strengthen its balance sheet, freeing up resources to focus on its core business of exploring and developing critical rare earth elements (CREE), zirconium, and hafnium resources. The company controls a 64-kilometer-long by 2-kilometer-wide belt within the emerging Port Hope Simpson – St. Lewis CREE District of South-east Labrador. The belt is road accessible, on tidewater, and located near three local communities, providing logistical advantages for potential development.
Search Minerals has already completed a preliminary economic assessment report with resource estimates for its FOXTROT and DEEP FOX deposits. Additionally, the company is working on four exploration prospects along the belt: FOX MEADOW, SILVER FOX, FOX RUN, and AWESOMEFOX. The company has also continued to optimize its patented Direct Extraction Process technology, supported by the Department of Energy and Mines, Government of Newfoundland and Labrador, and the Atlantic Canada Opportunity Agency. Two pilot plant operations have been completed, producing highly purified mixed rare earth carbonate concentrate and mixed rare earth oxide concentrate for separation and refining.
The completion of this shares-for-debt transaction underscores Search Minerals' commitment to prudent financial management while advancing its strategic objectives. The company is led by a proven management team and board of directors, with a focus on becoming a key supplier of critical rare earth elements, which are essential for modern technologies such as electric vehicles, wind turbines, and defense systems. The successful settlement of debt without cash outlay preserves capital for ongoing exploration and development activities.
For further details on the transaction, the full press release is available at https://ibn.fm/Novgb. The latest news and updates relating to Search Minerals can be found in the company’s newsroom at https://ibn.fm/SHCMF. This announcement was disseminated by InvestorWire, a specialized communications platform within the Dynamic Brand Portfolio @IBN, which provides advanced wire-grade press release syndication and other corporate communications solutions.
