Search Minerals Settles $185,000 Debt Through Shares-for-Debt Transaction
Search Minerals Inc. issued 370,000 common shares to extinguish $185,000 in outstanding indebtedness, strengthening its balance sheet as it advances its rare earth elements projects in Labrador.
Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) has completed a 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 was conducted in accordance with TSX Venture Exchange policies, and the debt has been fully satisfied and extinguished. 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.
The move allows Search Minerals to reduce its liabilities 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 South-east Labrador. Search controls a belt 64 km long and 2 km 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 projects. The company is also working on four exploration prospects along the belt: FOX MEADOW, SILVER FOX, FOX RUN, and AWESOME FOX. In addition, Search continues to optimize 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 and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.
The completion of this shares-for-debt transaction signals management's confidence in the company's prospects and its commitment to maintaining a healthy balance sheet. By settling debt with equity, Search Minerals avoids diluting cash reserves that can be directed toward advancing its rare earth elements projects, which are critical for various high-tech and green energy applications. Rare earth elements are essential components in magnets for electric vehicles, wind turbines, and consumer electronics, making Search's work strategically important as global demand for these materials grows.
For more information, the full press release is available at https://ibn.fm/Novgb. The latest news and updates relating to SHCMF are available in the company's newsroom at https://ibn.fm/SHCMF.