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Chico; This is a LOI that requires

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Middleborder   Thursday, 08/12/21 11:58:55 AM
Re: None
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Chico; This is a LOI that requires a later definitive agreement. Highlights;

Search is trading 15 million shares to purchase a 2.5
NSR ("Net Smelter Royalty") held by B&A Minerals Limited. They are transferring licenses on several mining properties. (B & A retains the right to explore for Gems?? on one? Garnet? Diamond?)

"Also, for greater certainty, the 2009 Mining Option Agreement between B&A and Search will, once the definitive agreement is signed, be fully discharged without any further existing or future contractual obligations."

I don't know the details of this, but removing obligations and creating certainty is good for a business. It would make a company a more attractive take over or buyout prospect. (The USA REE Collaboration agreement?)


"Greg Andrews, President and CEO states: “We believe the reduction of the Royalty, will provide flexibility with our future discussions regarding offtake agreements and funding for the projects."


B&A will still benefit with .5% NSR Royalty and as shareholder of 15 million shares.

Share dilution is being traded for a greater percentage of the profits from the marketable product (Assuming the NSR = the marketable product.)

For shareholders the profits will be reflected in a higher S/P or larger dividend. (Mining companies do not like to issue dividends from what I can see!) The SP was down to $.13 US on close, but it is back up to $.1404 US a 6% rise. Lets hope it continues!




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