Search Minerals Inc. (TSXV: SMY | OTC Pink: SHCMF) has closed the third and final tranche of its non-brokered private placement financing, bringing total gross proceeds to C$1,100,015.78. The upsized financing was fully subscribed across three tranches, with the final tranche raising C$284,999.85 through the issuance of critical mineral flow-through units. The funds are designated to advance the company's Foxtrot and Deep Fox rare earth projects in southeast Labrador, positioning Search Minerals within the growing North American rare earth supply chain.

Key Points

  • Search Minerals Inc. (TSXV: SMY | OTC Pink: SHCMF) is a Labrador-focused critical rare earth elements explorer and developer.
  • The company closed the final tranche of its non-brokered private placement, completing a fully subscribed C$1.1 million upsized financing.
  • The final tranche consisted of 1,055,555 flow-through units at C$0.27 each; warrants carry an exercise price of C$0.35 for 36 months from issuance.
  • Investors may watch for TSX Venture Exchange final acceptance of the financing and the company's progress at Foxtrot and Deep Fox.

Final Tranche Structure and Flow-Through Unit Terms

The final tranche comprised 1,055,555 critical mineral flow-through units priced at C$0.27 per unit, generating gross proceeds of C$284,999.85. Each flow-through unit consists of one flow-through common share under subsection 66(15) of the Income Tax Act (Canada) and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at C$0.35 for a period of 36 months from issuance. Shares issued under the final tranche are subject to a hold period expiring January 24, 2027. The financing remains subject to final acceptance by the TSX Venture Exchange.

Use of Proceeds and Critical Mineral Tax Credit Eligibility

Proceeds from the flow-through component — totalling C$799,999.74 across all tranches — will fund Canadian exploration expenses qualifying as flow-through mining expenditures related to the Foxtrot and Deep Fox projects. The company has stated it intends the expenditures to qualify for the Critical Mineral Exploration Tax Credit. Canadian exploration expenses will be renounced to subscribers with an effective date no later than December 31, 2026. The C$300,016.04 raised under the unit financing component will be directed to working capital and general corporate purposes.

Finder's Fees and Financing Aggregate Across Three Tranches

Red Cloud Securities Inc. acted as finder for the financing. Across all three tranches, the company paid aggregate cash finder's fees of C$49,000.00 to Red Cloud, Canaccord Genuity Corp., and Oak Hill Asset Management Inc. collectively. The parties also received an aggregate of 181,110 non-transferable common share purchase warrants as additional finder's compensation. The completed financing brings total gross proceeds to C$1,100,015.78, drawn from both the unit financing and the flow-through financing streams combined.