Search Minerals Announces Closing of Oversubscribed Private Placement

VANCOUVER, British Columbia, Jan. 06, 2021 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”), is pleased to announce that due to strong investor demand, the Company increased the size of and closed its previously announced non-brokered private placement offering of units of the Company (the "Units") for gross proceeds of $534,000 (the "Private Placement").

Pursuant to the Private Placement, the Company issued 8,900,000 Units at a price of $0.06 per Unit, with each Unit consisting of one common share of the Company (each, a "Share") and one common share purchase warrant of the Company (each, a "Warrant"). Each Warrant entitles the holder to acquire an additional Share for a period of 2 years at a price of $0.06 in the first year and $0.08 in the second year of the term of the Warrant.

The proceeds of the Private Placement will primarily be used for general working capital purposes. The securities issued in connection with the Private Placement will be subject to a four month and one day hold period under applicable securities laws.

Certain insiders of the Company purchased an aggregate of 420,000 Units under the Private Placement, constituting, to that extent, a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 (and Policy 5.9) contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation. The Company did not file a material change report more than 21 days before the expected closing of the Private Placement, as the details and amounts of the insider participation were not finalized until closer to the closing and the Company wished to close the transaction as soon as practicable for sound business reasons.

About Search Minerals Inc.

Led by a proven management team and board of directors, Search 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. The Company controls a belt 63 km long and 2 km wide and is road accessible, on tidewater, and located within 3 local communities. Search has completed a preliminary economic assessment report for FOXTROT, and a resource estimate for DEEP FOX. Search is also working on three exploration prospects along the belt which include: FOX MEADOW, SILVER FOX and AWESOME FOX.