Search Minerals Announces Closing of $2,520,000 Flow-Through Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, April 07, 2021 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”), is pleased to announce that the Company has closed its previously announced non-brokered private placement offering of 14,000,000 flow-through common shares of the Company (the "FT Shares") at a price of $0.18 per FT Share, for aggregate gross proceeds of $2,520,000 (the "Private Placement").
The Company intends to use the proceeds from the Private Placement to incur eligible Canadian Exploration Expenses and flow-through mining expenditures, as defined under the Income Tax Act (Canada), that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2021.
In consideration for its services, the Company has paid a finder's fee to GloRes Securities Inc. with respect to certain purchasers consisting of a cash fee totaling $102,078 and issued 567,100 non-transferable finder's warrants (each, a "Warrant"). Each Warrant entitles the holder to acquire one common share of the Company at an exercise price of $0.35 per common share for a period of 12 months from the date of issuance.
All securities issued pursuant to the Private Placement are subject to a statutory four-month hold period. The Private Placement is subject to receipt of final approval of the TSX Venture Exchange.
Certain insiders of the Company purchased as aggregate of 270,334 FT Shares under the Private Placement, constituting, to that extent, a "related party transaction" within the meaning of 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.