VANCOUVER, Oct. 04, 2018 (GLOBE NEWSWIRE) -- Search Minerals Inc. (“Search” or the “Company”) (TSXV:
SMY), is pleased to announce that InCoR Holdings PLC (“InCoR”) has agreed to lend the Company an
additional CDN $150,000, which will be used for general working capital purposes. The loan is a non-interest bearing demand loan
and will be secured by the existing security package given by the Company and its subsidiary in favor of InCoR in connection with
the secured convertible debentures issued to InCoR on September 28, 2017 (the “September Debenture”) and October
27, 2017 (the “October Debenture”), in the amounts of $150,000 and $350,000, respectively.
The September Debenture was not converted and matured on September 28, 2018, at which time it became repayable in
cash. As the Company pursues a refinancing of both the September Debenture and the October Debenture, InCoR has agreed to forbear
taking any action under the September Debenture or the related security agreements for duration of the period beginning September
29, 2018, and ending on October 27, 2018. As consideration for this forbearance the Company has agreed to pay InCoR a forbearance
fee in the amount of CDN $30,000 which is payable at the end of the forbearance period.
The foregoing constitute “related party transactions” within the meaning of Multilateral Instrument 61-101
Protection of Minority Security Holders in Special Transactions (“MI 61-101”) because InCoR is a “Control Person”
of the Company. The Company is relying on the exemptions from the formal valuation and minority approval requirements in
Sections 5.5.(a) and 5.7(1)(a) of MI 61-101, on the basis that the fair market value of the transactions does not exceed 25% of the
Company’s Market Capitalization.
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 South East Labrador (the
“District”). 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 “Deep Fox” and “Fox Meadow” as significant new
CREE prospects very similar and in close proximity to the original FOXTROT discovery. While the Company has identified more than 20
other prospects in the District, its primary objective remains development of FOXTROT with the clearly demonstrated success of the
proprietary processing technology at the pilot plant level 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. The preliminary economic assessment is preliminary in nature and
includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic
assessment will be realized. The preliminary economic assessment includes the results of an economic analysis of mineral
resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
All material information on the Company may be found on its website at www.searchminerals.ca and on SEDAR at www.sedar.com
About neo-CREOs (Adamas Intelligence – November 2017)
We consider neodymium, praseodymium, and dysprosium to be neo-CREOs and they are vital to NdFeB magnets used
widely in renewable power generation, electric mobility, and energy-efficient technologies. We consider terbium to be a
neo-CREO because upon experiencing shortages of dysprosium, consumers in the magnet industry will rapidly consume available terbium
supplies in its place for applications involving renewable power generation, electric mobility and energy efficient
technologies. Lanthanum is considered a neo-CREO because it is widely used in catalytic converters and rechargeable
batteries, and will be increasingly used as a thermal stabilizer by producers of poly-vinyl chloride (PVC) to minimize lead
consumption and improve the energy efficiency of PVC and other processing equipment.
For further information, please contact:
Greg Andrews
President and CEO
Tel: 604-998-3432
E-mail: info@searchminerals.ca
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.
Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure
to comply with this restriction may constitute a violation of U.S. securities laws.
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, advancement of the Company’s Foxtrot Project, environmental assessment results, results from public
consultations, provincial studies and the completion of environmental studies. 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, public consultations drastically change the Guidelines, the refusal of the provincial and federal government to
cooperate during the assessment process and the results of the environmental assessment are not favourable to the Company.
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, the Company does not assume any obligation to update the forward-looking
statements of beliefs, opinions, projections, or other factors, should they change.
