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FAQ: Search Minerals Inc. Shares-for-Debt Transaction with LeadFX Inc.
TL;DR
Search Minerals gains financial advantage by settling debt with shares instead of cash, preserving capital for critical rare earth element exploration.
Search Minerals issued 808,107 shares at $0.50 each to settle $404,053.73 in debt with LeadFX, utilizing MI 61-101 exemptions.
This debt settlement strengthens Search Minerals' financial position to advance rare earth element projects, supporting future sustainable technology development.
Search Minerals creatively settled debt by issuing shares instead of taking a loan, maintaining focus on Labrador's rare earth element deposits.
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Search Minerals Inc. has entered a shares-for-debt transaction with LeadFX Inc. to settle $404,053.73 of outstanding debt by issuing 808,107 common shares at a deemed price of $0.50 per share.
The company stated that completing this transaction, rather than proceeding with a previously planned unsecured convertible loan, will preserve cash and strengthen its balance sheet.
Search Minerals issued 808,107 common shares at a deemed price of $0.50 per share to settle the $404,053.73 debt.
The shares will carry a four-month-and-one-day statutory hold period.
The transaction falls under MI 61-101 because LeadFX is a related party, though Search Minerals said it qualifies for exemptions from formal valuation and minority approval requirements since the fair market value of shares issued does not exceed 25% of its market capitalization.
No, the company stated that no new control person will be created as a result of this transaction.
Search Minerals is focused on exploring for and developing Critical Rare Earths Elements (CREE) as well as transition metals Zirconium (Zr) and Hafnium (Hf) within the emerging Port Hope Simpson – St. Lewis CREE District of South-East Labrador.
The company controls two deposits (Foxtrot and Deep Fox), two drill ready prospects (Fox Meadow and Silver Fox), and numerous other CREE prospects including Fox Valley, Foxy Lady and Awesome Fox along a 64 kilometre long belt in Labrador, plus additional CREE assets in the Red Wine CREE District of central Labrador.
The latest news and updates relating to SHCMF are available in the company's newsroom at https://ibn.fm/SHCMF, and the full press release for this transaction can be viewed at https://ibn.fm/S3raI.
Curated from InvestorBrandNetwork (IBN)
