Searchlight Res to sell Kulyk Lake, Daly Lake projects

Executive Summary

• Searchlight Resources Inc. has entered into an agreement to sell its wholly-owned Kulyk Lake and Daly Lake critical metals projects in Northern Saskatchewan to Monazite Metals Corp. (MMC).
• The transaction consideration includes cash, equity, a net smelter royalty, and milestone-based payments, allowing Searchlight to refocus on its flagship gold projects.
• Concurrently, Searchlight appointed Jason Powell as Manager of Corporate Development to handle investor relations and strategic growth.

Key Details

• Transaction Parties: Searchlight Resources Inc. (Seller) and Monazite Metals Corp. (MMC, Buyer).
• Assets Sold: Kulyk Lake and Daly Lake projects, comprising contiguous claim blocks in the Wollaston domain, located 55 km south of the Key Lake uranium mine and mill in Northern Saskatchewan.
• Consideration Structure:
  • Cash: $180,000 payable on closing.
  • Equity: 10 million shares of MMC payable on closing.
  • Royalty: A 1% net smelter royalty (NSR), which MMC has the option to buy out for $1,000,000 at any time.
  • Milestone Payments: $300,000 in equity payments contingent upon achieving specific drilling result milestones.
• Advisory Fees: Canaccord Genuity is to receive an advisory fee of $20,000.
• Strategic Impact: Searchlight intends to use the proceeds to focus exploration efforts on its flagship gold projects near Flin Flon, specifically planning a 2,000-metre drill program on the 100%-owned Robinson Creek gold project.
• Corporate Appointment: Jason Powell (Principal of 51 Media Ltd.) appointed as Manager, Corporate Development.
• Advisory Services: 51 Media will manage investor relations and capital markets engagement for a monthly fee of $5,000 plus GST.

Notable Quotes

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