Search Minerals closes $843,847 in financings

Executive Summary

• Search Minerals Inc. has closed its previously announced non-brokered private placement financings, raising total gross proceeds of $843,847.
• The financing consisted of two tranches: a flow-through unit offering and a non-flow-through common share offering.
• Proceeds are designated for eligible Canadian exploration expenses related to the Foxtrot and Deep Fox projects in Labrador, as well as working capital.

Key Details

• Total Gross Proceeds: $843,847.
• Flow-Through Unit Tranche:
  • Quantity: 1,487,694 units.
  • Price: 50 cents per flow-through unit.
  • Gross Proceeds: $743,847.
  • Composition: Each unit consists of one flow-through common share and one-half of one transferable non-flow-through common share purchase warrant.
  • Warrant Terms: Each warrant is exercisable to acquire one non-flow-through common share at an exercise price of 65 cents per share.
  • Warrant Expiration: November 6, 2027.
  • Charity Component: 620,002 units were issued on a charity flow-through basis through an arrangement with Wealth Creation Preservation & Donation Inc.
• Non-Flow-Through Share Tranche:
  • Quantity: 303,030 common shares.
  • Price: 33 cents per offered share.
  • Gross Proceeds: $100,000.
• Use of Proceeds:
  • Flow-Through Proceeds: To incur eligible Canadian exploration expenses (flow-through mining expenditures) related to the Foxtrot and Deep Fox projects in Labrador. The company intends these expenses to be eligible for the critical mineral exploration tax credit.
  • Share Proceeds: For working capital and general corporate purposes.
• Finder’s Fees and Compensation:
  • Cash Fees: Aggregate of $16,109.76 paid to Mine Equities Ltd. and Canaccord Genuity Corp., representing 6% of the gross proceeds of flow-through units sold to subscribers introduced by these parties.
  • Finder Warrants: Aggregate of 6,000 non-transferable common share purchase warrants issued to Canaccord Genuity, representing 6% of the flow-through units sold to subscribers introduced by this party.
  • Finder Warrant Terms: Exercisable to acquire one non-flow-through common share at an exercise price of 65 cents per share until November 6, 2027.
• Regulatory and Legal:
  • Exchange Approval: Subject to final acceptance of the TSX Venture Exchange.
  • Hold Period: Shares and warrants are subject to a hold period under applicable Canadian securities laws, expiring on March 7, 2026.