VANCOUVER, Oct. 4, 2016 /CNW/ - (TSXV: SMY) Search
Minerals Inc. ("Search" or the "Company") reports that it has negotiated certain amendments to the Exploration
Activity Agreement between the Company and NunatuKavut Community Council Inc. ("NCC") dated August
22, 2012 (the "Agreement").
Under the terms of the amending agreement, NCC has agreed to accept 357,143 units of the Company (the "Units") at a
deemed issue price of $0.07 per Unit in settlement of payments owing to NCC under the Agreement in
the amount of $25,000 (the "Debt"). Each Unit will consist of one common share of the Company
(a "Share") and one common share purchase warrant of the Company (a "Warrant"). Each Warrant will entitle the holder
to purchase one additional Share (a "Warrant Share") at a price of $0.14 per Warrant Share for
a period of twelve months.
The Units will be issued concurrently with an additional 50,000 Shares due for issue under the original terms of the Agreement
(the "Agreement Shares").
Greg Andrews, President and CEO comments: "We are very appreciative of the continued support by
the NunatuKavut Community Council for the development of the FOXTROT Project. The guidance and support of NCC will be very
helpful as we commence the Environmental Assessment process necessary to advance the FOXTROT Project and the Critical Rare Earth
District."
Todd Russell, President of NCC, states: "We appreciate the time and effort that Search
Minerals has invested into building a positive relationship with the NCC and our communities. They have been very diligent in their
work and have been respectful of the fact they are on our Indigenous lands. The NCC looks forward to continuing to strengthen its
relationship with Search Minerals as the project progresses."
The Company decided to settle the Debt with Units in order to preserve its remaining cash for the environmental assessment
applications, operations and completion of the pilot plant.
The issuance of the Units and the Agreement Shares to NCC is subject to the approval of the TSX Venture Exchange. All securities
issued will be subject to a four month hold period which will expire on the date that is four months and one day from the date of
issue.
About Search Minerals Inc.
Led by a proven management team and board of directors, Search is focused on finding and developing resources within the
emerging Port Hope Simpson Critical Rare Earth Element (CREE) District of SE Labrador. The Company
controls a belt 70 km long and 8 km wide including its 100% interest in the FOXTROT Project which is road accessible and at
tidewater. Exploration efforts have advanced "Deepwater Fox" and "Fox Meadow" as significant new CREE prospects very similar and in
close proximity to the FOXTROT discovery. While the Company has identified more than 20 other prospects in the District, its
primary objective remains development of FOXTROT by confirming proprietary processing technology at the pilot plant level (in
progress) and delineation of prospects that will ensure competitive-low cost production beyond the 14-year mine life contemplated
in the preliminary economic assessment of FOXTROT completed in April 2016. The FOXTROT Project has a low capital cost to
bring the initial project into production ($152 M), a short payback period, and is scalable due to
Search's proprietary processing technology.
All material information on the Company may be found on its website at www.searchminerals.ca and on SEDAR at www.sedar.com
About NunatuKavut Community Council
The NunatuKavut Community Council (NCC) is the representative governing body for approximately 6,000 Inuit of south and central
Labrador, collectively known as the Southern Inuit of NunatuKavut. NunatuKavut means "Our Ancient
Land" in Inuktitut and is the traditional territory of the Southern Inuit.
About CREE's
Identified as Neodymium (Nd), Europium (Eu), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y) this valuable subset of the complete
series of seventeen rare earth elements is considered critical due to high demand and/or constrained domestic supply. Containing
unique properties which enhance the performance of a range of innovative technologies, CREE's are essential components in the
development of permanent magnets and a variety of other components used in renewable energy, green technology automobiles, medical
devices, electronics and agricultural production.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding "Forward-Looking" Information.
This news release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking
statements") within the meaning of applicable Canadian and United States securities legislation
including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of
historical fact, included herein, without limitation, statements relating the future operating or financial performance of the
Company, are forward-looking statements.
Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will",
"may", "could", or "should" occur or be achieved. Forward-looking statements in this news release relate to, among other
things future events or the Company's future performance, business prospects or opportunities, including the completion of the
issuance of Units and Shares to NCC. Actual future results may differ materially. There can be no assurance that such
statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such
statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and
are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently
subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors,
both known and unknown, could cause actual results, performance or achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made
assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, general
business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and
competitive developments; and those additional risks set out in Search's public documents filed on SEDAR at www.sedar.comor or the
risk that Search does not receive the approval of the TSX Venture Exchange. Although Search believes that the
assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news release and no assurance can be given that such events will occur in
the disclosed time frames or at all. Except where required by law, Search disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Search Minerals Inc.