Search Minerals (TSXV:SMY) has announced a non-brokered private placement of up to 34 million units at $0.09 each for gross proceeds of $3,060,000.
As quoted in the press release:
Each Unit will consist of one common share in the authorized share structure of the Company and one-half of one share purchase warrant (each whole warrant, a “Warrant“). Each Warrant will entitle the holder to purchase one additional common share in the capital of the Company (a “Warrant Share“) at a price of $0.18 per Warrant Share for a period of twelve months from the closing of the Private Placement.
The Company will use the proceeds from the Private Placement to complete a drilling program on the Deep Fox prospect (formerly called Deepwater Fox), to complete the environmental assessment applications and for general working capital requirements. The proceeds will be allocated as 1) $ 1,000,000 for the environmental application process and general working capital, and 2) up to $ 2,060,000 will be used for the Deep Fox drill program and other exploration in the District.
Greg Andrews, President/CEO states: “Completion of metallurgical testing necessarily consumed much of our financial resources and management time. Also, Search was very focused on reaching settlement agreements with creditors, prior to our November 2016 audit year end, which reduced the majority of the corporate debt off the balance sheet. With a stronger balance sheet and the successful metallurgy, Search believes it is the right time to validate the District with the Deep Fox drill program. Dr. Randy Miller, Vice-President, Exploration, will use the Foxtrot-like geological model, developed from the Foxtrot resource drilling programs, to plan an efficient and cost effective drill program at Deep Fox. Since Deep Fox is a Foxtrot-like prospect, we expect the geology and mineralization there to fit the model. The funds from this private placement will be used to advance important and complementary aspects of our overall strategic plan in the following key areas as follows.”