VANCOUVER, British Columbia, June 17, 2021 (GLOBE NEWSWIRE) -- Search Minerals Inc. (“Search” or the “Company”) (TSXV: SMY), is pleased to announce that it has signed an Option Agreement (the “Agreement”) with United Gold Inc, Aubrey Budgell, and Donna Lewis, (collectively, the “Vendors”) for an option (the “Option”) to acquire an undivided 100% interest in and to certain claims owned by the Vendors known as the Two Tom Property (the “Property”).
In order to maintain and exercise the Option, Search is required to make cash payments to the Vendors totalling $200,000 and issue 1,600,000 common shares (the “Shares”) in accordance with the following schedule:
Cash Payments
$40,000 on the date the TSX Venture Exchange accepts the Agreement for filing (the “Acceptance Date”);
$50,000 before the first anniversary of the Acceptance Date;
$50,000 before the second anniversary of the Acceptance Date; and
$60,000 on the third anniversary of the Acceptance Date.
Share Issuances
400,000 Shares on the Acceptance Date;
400,000 Shares before the first anniversary of the Acceptance Date;
400,000 Shares before the second anniversary of the Acceptance Date; and
400,000 Shares before the third anniversary of the Acceptance Date.
If Search exercises the Option and acquires an undivided 100% legal and beneficial right, title and interest in and to the Property, the Vendors will thereafter be entitled to a 3% Net Smelter Returns royalty with respect to the Property (the “NSR Royalty”), payable upon the commencement of commercial production, provided that Search will have the right to purchase from the Vendors two-thirds of the NSR Royalty upon payment of the sum of $2,000,000 to the Vendors at any time.
The Property consists of two licenses (027378M and 016522M) totalling 20 claims (4 square kilometres or 400 ha). These two licenses collectively encompass the Two Tom Lake Be-Nb-REE resource. This acquisition further enhances the Company’s strong position in the Red Wine REE (Rare Metal) District in west-central Labrador.
No finder’s fee was payable in connection with the Agreement, and the Agreement is subject to TSX Venture Exchange acceptance.
For further information, please contact:
Greg Andrews
President and CEO
Tel: 604-998-3432
E-mail: info@searchminerals.ca
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 Critical Rare Earth Element (“CREE”) District of South East Labrador. The Company controls a belt 63 km long and 2 km wide including its 100% interest in the FOXTROT and DEEP FOX Projects, which are road accessible and at tidewater. Exploration efforts have advanced FOX MEADOW, AWESOME FOX and SILVER FOX as new CREE prospects very similar to and in close proximity to FOXTROT and DEEP FOX.
Search has continued to optimize our patented Direct Extraction Process technology with the generous support from the Department of Tourism, Culture, Industry and Innovation, Government of Newfoundland and Labrador, and from the Atlantic Canada Opportunity Agency. We have completed two pilot plant operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.
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.