Searchlight closes sale of Saskatchewan projects to MMC

Executive Summary

• Searchlight Resources Inc. has closed the sale of its Kulyk Lake and Daly Lake critical metals projects in Northern Saskatchewan to Monazite Metals Corp. (MMC).
• The transaction involves a combination of cash, equity, and royalty interests, with potential additional milestone-based payments.
• Searchlight will retain a 1% net smelter royalty (buyable for $1 million) and receive $180,000 cash plus 10.2 million MMC shares at closing.

Key Details

• Transaction Structure: Arms-length agreement closed on Dec. 16, 2025.
• Assets Sold: Kulyk Lake and Daly Lake projects, wholly owned by Searchlight, comprising contiguous claim blocks in the Wollaston domain, 55 km south of the Key Lake uranium mine and mill.
• Consideration:
  • Cash: $180,000 paid on closing.
  • Equity: 10.2 million shares of Monazite Metals Corp. (MMC) issued on closing, with a deemed price of $0.10 per share.
  • Royalty: A 1% net smelter royalty (NSR) retained by Searchlight, which MMC can buy out at any time for $1,000,000.
  • Milestone Payments: $300,000 in equity payments payable to Searchlight if certain drilling result milestones are achieved by MMC.
• Advisory Fees: $20,000 payable to Canaccord Genuity.
• Strategic Impact: Searchlight CEO Stephen Wallace stated the deal allows the company to focus exploration efforts on its flagship gold projects near Flin Flon, specifically planning for the reopening of an estimated 1,500 metres of underground workings at the high-grade Rio gold mine.

Notable Quotes

• "Searchlight is impressed with the management team of Monazite and its plans for the Kulyk Lake and Daly Lake properties. This agreement allows Searchlight to focus its exploration efforts on its flagship gold projects near Flin Flon," stated Stephen Wallace, Searchlight's chief executive officer.