Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) announced the completion of its previously disclosed 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 eliminate a liability from its balance sheet without using cash, preserving capital for its core business activities. The company is focused on finding and developing Critical Rare Earth Elements (CREE), Zirconium (Zr), and Hafnium (Hf) resources within the emerging Port Hope Simpson – St. Lewis CREE District of Southeast Labrador. Search controls a mineral belt 64 kilometers long and 2 kilometers wide, which is road accessible, on tidewater, and located near three local communities.
Search has completed a preliminary economic assessment report with resource estimates for its FOXTROT and DEEP FOX deposits. The company is also advancing four exploration prospects along the belt: FOX MEADOW, SILVER FOX, FOX RUN, and AWESOME FOX. In addition, Search has been optimizing its patented Direct Extraction Process technology with support from the Department of Energy and Mines, Government of Newfoundland and Labrador, and the Atlantic Canada Opportunity Agency. The company has completed two pilot plant operations, producing highly purified mixed rare earth carbonate concentrate and mixed rare earth oxide concentrate for separation and refining.
By settling debt with equity, Search Minerals strengthens its financial position as it continues to advance its rare earth projects, which are critical for various high-tech and green energy applications. Rare earth elements are essential components in permanent magnets for electric vehicles, wind turbines, and electronics, making Search's progress significant for the supply chain outside of China. The transaction reflects the company's commitment to preserving cash while rewarding creditors with equity upside.
For more information on the full press release, visit https://ibn.fm/Novgb. The latest news and updates relating to SHCMF are available in the company's newsroom at https://ibn.fm/SHCMF.
