Search Minerals Amends Shares-for-Debt Transaction After Creditor Opts Out

Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) has amended its previously announced shares-for-debt transaction, now agreeing to settle $185,000 in outstanding indebtedness through the issuance of 370,000 common shares at a deemed price of $0.50 per share. The revision comes after one creditor elected not to participate in the original arrangement, according to a press release from the company. The transaction is subject to approval from the TSX Venture Exchange.

The amendment reduces the total debt settlement from the originally planned amount, as the non-participating creditor’s portion was removed. Search Minerals will issue the shares to the remaining creditors, effectively converting debt into equity. The company’s move to settle debt with shares is a common practice for junior mining companies to preserve cash while addressing liabilities.

Search Minerals is focused on developing Critical Rare Earth Elements (CREE), Zirconium (Zr), and Hafnium (Hf) resources within the Port Hope Simpson – St. Lewis CREE District in southeast Labrador. The company controls a 64-kilometer-long by 2-kilometer-wide belt that is road accessible, on tidewater, and near three local communities. The company has completed a preliminary economic assessment (PEA) with resource estimates for its FOXTROT and DEEP FOX projects.

In addition to its flagship projects, Search is actively exploring four prospects along the belt: FOX MEADOW, SILVER FOX, FOX RUN, and AWESOME FOX. The company continues to optimize its patented Direct Extraction Process technology, supported by the Department of Energy and Mines, Government of Newfoundland and Labrador, and the Atlantic Canada Opportunity Agency. Search has completed two pilot plant operations, producing highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.

The rare earth elements market has gained strategic importance due to their use in high-tech applications, including electric vehicles, wind turbines, and defense systems. Search Minerals’ progress in developing these resources positions it as a potential domestic supplier, which could reduce reliance on foreign sources, particularly from China. The company’s focus on environmentally friendly extraction technology further underscores its commitment to sustainable resource development.

For more details on the amended transaction, the full press release is available at https://ibn.fm/pP1No. Latest news and updates on Search Minerals can be found in the company’s newsroom at https://ibn.fm/SHCMF.

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