VANCOUVER, B.C., Nov. 30, 2018 (GLOBE NEWSWIRE) -- (TSXV: SMY) Search Minerals
Inc. (“Search” or the “Company”) is pleased to announce that it has consolidated and
refinanced its existing secured debt in the aggregate amount of $850,000 through the issuance of a non-brokered secured convertible
debenture (“Debenture”) to InCoR Holdings Plc (“InCoR”). As previously announced in a news
release dated September 7, 2017, InCoR has previously provided funding of $500,000 by way of Debentures. As further announced by
news releases dated October 4, 2018, and, November 8, 2018, InCoR has additionally provided funding to the Company in the amounts
of $150,000 and $200,000, respectively.
The Debenture will have a maturity date of one year from the date of issuance and will bear simple interest at a
rate of 15% per annum, calculated and paid semi-annually, in cash or, at InCoR’s option, payable in common shares.
Prior to the maturity date, the Debenture will be convertible into units (“Units”) of the
Company at a conversion price of $0.05 per Unit, all in accordance with the terms set forth in the certificate representing the
Debenture. Each Unit will be comprised of one Common Share and one Common Share purchase warrant (a “Warrant”)
with each Warrant entitling the holder thereof to acquire one additional Common Share at an exercise price of $0.06 per Common
Share for five years from the date of issuance. The Debenture is secured by a general security agreement over all of the Company’s
assets and a share pledge agreement pursuant to which the Company has pledged all the shares of its wholly owned subsidiary Alterra
Resources Inc.
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.
The Debenture and any securities issued on its conversion will be subject to a statutory hold period of four
months and one day from the Closing Date. Completion of the financing is subject to the approval of the TSX Venture Exchange (the
“TSXV”).
About Search Minerals
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 to 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. The delineation of additional
resources will support competitive-low cost production beyond the 14-year mine life outlined in the FOXTROT PEA (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.