Search Minerals Inc.
TSX VENTURE : SMY

Search Minerals Inc.

November 14, 2016 13:38 ET

Search Minerals Closes Third and Final Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 14, 2016) - Search Minerals Inc. (TSX VENTURE:SMY) ("Search" or the "Company") is pleased to announce the closing of the third and final tranche of its previously announced private placement. Further to its news releases dated September 13, 2016, October 11, 2016, October 26, 2016 and October 31, 2016, the Company has completed the third and final tranche of its non-brokered private placement (the "Offering") raising gross proceeds of $90,055 by the issuance of 1,286,500 units (the "Units") at $0.07 per Unit. Each Unit consists of one common share in the capital of the Company (a "Share") and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one 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 12 months from the closing of the Offering. Certain directors of the Company (the "Directors") purchased 315,000 Units under this tranche. With the completion of the three tranches, the Company has issued 12,276,500 Units for gross proceeds of $859,355. The expiry date for the Warrants issued in the three tranches of the Offering will be November 14, 2017.

Greg Andrews, President and Chief Executive Officer of the Company, states, "Search is very pleased to close this oversubscribed private placement. I would like to thank our current shareholders who participated and welcome our new shareholders. It is a testament to the quality of our project and management team that Search can attract capital to continue to advance the Critical Rare Earth District in Southeast Labrador (the "District"). With the expected conclusion of the pilot plant in the upcoming months, it is anticipated that Search will be able to provide interested refineries and new separation technology providers with actual mixed rare earth concentrate processed from the FOXTROT deposit. We look forward to the next phase of developing this District."

All securities issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation.

The proceeds from the Offering will be used to complete environmental assessment applications and for general working capital requirements.

No finder's fees or commissions are payable in connection with the financing.

As the Directors are considered to be "related parties" of the Company, the issuance of Units to the Directors will be considered to be a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). All of the independent directors of the Company, acting in good faith, considered the transactions and have determined that the fair market value of the securities being issued to the Directors and the consideration being paid is reasonable. The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(a) or (b) of MI 61-101.

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, the use of proceeds of the Offering, the timing of the expected conclusion of the pilot plant and the effect that the pilot plant will have on the Company. 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 management of the Company may decide to use the proceeds of the Offering in a different way and the risk that the conclusion of the pilot plant is delayed. 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, Search 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.

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