Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) announced the completion of a shares-for-debt transaction, issuing 370,000 common shares at a deemed price of $0.50 per share to settle $185,000 of outstanding indebtedness. The move, conducted in accordance with TSX Venture Exchange policies, fully satisfies and extinguishes the debt, with the issued shares subject to a statutory hold period of four months and one day from issuance. The transaction remains subject to final acceptance by the TSX Venture Exchange.
The debt settlement allows Search Minerals to reduce its liabilities without using cash, preserving capital for its core business activities. The company is focused on finding and developing Critical Rare Earth Elements (CREE), Zirconium (Zr) and Hafnium (Hf) resources within the emerging Port Hope Simpson – St. Lewis CREE District of South-east Labrador. Search controls a belt 64 km long and 2 km wide that is road accessible, on tidewater, and located near three local communities.
Search Minerals has completed a preliminary economic assessment report with resource estimates for its FOXTROT and DEEP FOX projects. The company is also working on four exploration prospects along the belt: FOX MEADOW, SILVER FOX, FOX RUN, and AWESOME FOX. Additionally, Search has been optimizing its patented Direct Extraction Process technology with support from the Department of Energy and Mines, Government of Newfoundland and Labrador, and the Atlantic Canada Opportunity Agency. The company has completed two pilot plant operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.
The shares-for-debt transaction is a strategic financial move that strengthens Search Minerals' balance sheet and demonstrates confidence from creditors who accepted equity in lieu of cash. This approach is common among junior mining companies seeking to conserve cash while advancing exploration and development activities. The completion of this transaction removes a financial overhang and allows management to focus on its critical minerals projects, which are increasingly important given global demand for rare earth elements used in electronics, renewable energy, and defense applications.
Investors and stakeholders can find the latest news and updates relating to SHCMF in the company's newsroom at https://ibn.fm/SHCMF. For more information about Search Minerals, including the full press release on the shares-for-debt transaction, visit https://ibn.fm/Novgb.
