VANCOUVER, June 17, 2021 - Search Minerals Inc. (“Search” or the “Company”) (TSXV: SMY), is pleased to announce that it has signed a binding letter agreement (the “Letter Agreement” ) with Roland Quinlan and Eddie Quinlan (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 Mann#1, and another claim proximal to Two Tom Lake, (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
$20,000 on the date the TSX Venture Exchange accepts the Letter Agreement for filing (the “Acceptance Date”);
$30,000 before the first anniversary of the Acceptance Date;
$60,000 before the second anniversary of the Acceptance Date;
$60,000 before the third anniversary of the Acceptance Date; and
$30,000 before the fourth 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;
300,000 Shares before the third anniversary of the Acceptance Date; and
100,000 Shares before the fourth anniversary of the Acceptance Date.
Search will grant the Vendors a 3.0% Net Smelter Return Royalty (“NSR”) on the Property. Search will have the right to purchase 2.5% of the NSR at any time for $2,000,000
The Property consists of two licenses, 027380M (4 claims) and 027384M (20 claims), totalling 24 claims, that equal 6 square kilometres (600 ha.). License 027380M encompasses the Mann #1 Be-Nb-REE mineralized zone. License 027384M is proximal to the Two Tom Lake Be-Nb-REE resource. The acquisition of these two properties further enhances the Company’s strong position in the Red Wine REE (Rare Metal) District in west-central Labrador.
