VANCOUVER, Oct. 11, 2016 /CNW/ - Search Minerals
Inc. (TSXV: SMY) ("Search" or the "Company") is pleased to announce the closing of the first
tranche of its previously announced private placement. Further to its news release dated September 13,
2016, the Company has completed the first tranche of its non-brokered private placement (the "Offering") raising gross
proceeds of $364,000 by the issuance of 5,200,000 units (the "Units") at $0.07 per Unit. Each Unit consists of one common share in the capital of the Company (a "Share") and one
share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share in the capital
of the Company (a "Warrant Share") at a price of $0.14 per Warrant Share for a period of 12 months
from the closing of the Offering. Raymond Saunders, a director of the Company, purchased
436,716 Units under this initial tranche.
All securities issued pursuant to the Private Placement are subject to a statutory hold period of four months plus one day
from the date of issuance, in accordance with applicable securities legislation.
The proceeds from the Private Placement will be used to complete environmental assessment applications and for general
working capital requirements.
The Company intends to close the final tranche of the Offering by October 28, 2016. Closing
of the Private Placement is subject to a number of conditions, including receipt of all necessary corporate and regulatory
approvals, including the approval of the TSX Venture Exchange. No finder's fees or commissions are payable in connection with
the financing.
As Raymond Saunders is considered to be a "related party" of the Company, the issuance of
Units to Mr. Saunders will be considered to be "related party transaction" under Multilateral Instrument 61-101 - Protection of
Minority Security Holders in Special Transactions ("MI 61-101"). All of the independent directors of the Company,
acting in good faith, considered the transactions and have determined that the fair market value of the securities being issued to
Mr. Saunders and the consideration being paid is reasonable. The Company intends to rely on the exemptions from the valuation and
minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(a) or (b) of MI 61-101.
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 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 the completion of subsequent tranches of the Private Placement and the use of proceeds of the Private
Placement. 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, the risk that the Company
is not able to find suitable investors for the Private Placement and that management of the Company may decide to use the proceeds
in a different way. Readers should not place undue reliance on the forward-looking statements and
information contained in this news release concerning these times. Except as required by law, Search does not assume any
obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except
as required by law.
SOURCE Search Minerals Inc.