Search Minerals closes loan transaction with Petra

Executive Summary

• Search Minerals Inc. has closed a $3-million unsecured convertible revolving loan transaction with Petra Holdings Company Inc.
• The company has drawn down an initial $750,000, with the remaining $2.25 million available for future drawdowns subject to TSX Venture Exchange acceptance.
• Proceeds are designated for the development of the Foxtrot and Deep Fox mining projects, including equipment, infrastructure, and technical assessments, as well as general working capital and debt reduction.

Key Details

• Transaction Structure: Unsecured convertible revolving loan with Petra Holdings Company Inc.
• Total Principal Amount: $3,000,000 CAD.
• Initial Drawdown: $750,000 CAD.
• Remaining Availability: $2,250,000 CAD, subject to prior acceptance by the TSX Venture Exchange.
• Maturity Date: November 12, 2028.
• Interest Rate: 15% per annum, payable quarterly in arrears.
• Use of Proceeds: Development of Foxtrot and Deep Fox mining projects (equipment, site operations, infrastructure, technical assessments, environmental regulatory compliance), general working capital, corporate purposes, and reduction of other indebtedness.
• Conversion Terms:
  • Convertible into common shares at Petra's option prior to the maturity date.
  • Conversion Price (First Year): 50 cents per common share (from closing date to first anniversary).
  • Conversion Price (Post-First Anniversary): Average of the closing price on the TSX-V for the 10 days ending on the last trading day prior to Petra's notice of conversion, provided the price is no less than the greater of 50 cents and the market price on the date of conversion.
  • Hold Period: Any common shares issued upon conversion are subject to a hold period ending March 13, 2026.
• Director Nomination Rights: Petra is entitled to nominate Michael Pearson as a director for so long as at least $500,000 principal is outstanding or Petra owns at least 5% of outstanding common shares. Mr. Pearson was previously appointed on September 19, 2025.
• Information Rights: Petra receives copies of all continuous disclosure documents filed on SEDAR+ concurrently with the company's filing.

Notable Quotes

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