2020-05-26 18:42 ET - News Release
Mr. Stephen Wallace reports
SEARCHLIGHT ANNOUNCES CLOSING OF PRIVATE PLACEMENT FINANCING
Searchlight Resources Inc. has closed a private placement of flow-through and non-flow-through units as previously announced by press release of May 8, 2020.
The company issued 22.86 million units at a price of 2.5 cents per unit for aggregate proceeds of $571,500. Each unit consists of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the company at an exercise price of five cents per common share for a period of three years from the date of issue.
The company also issued 14,584,000 flow-through units at a price of three cents per unit for aggregate proceeds of $437,520. Each FT unit will consist of one flow-through common share and one-half of one flow-through common share purchase warrant. Each full FT warrant will entitle the holder to purchase one additional flow-through common share of the company at an exercise price of five cents per common share for a period of one year from the date of issue.
Shares issued pursuant to the FT units will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).
Searchlight intends to use the proceeds of the private placement to finance exploration expenditures on its portfolio of mineral properties and for general working capital.
The company incurred cash commissions and finders' fees of $63,631 and issued 2,201,080 broker warrants, of which 1,020,880 expire one year from the date of closing and 1,180,200 expire three years from the date of issue.
All the securities issued are subject to a four-month hold period from the date of closing.