Search Minerals Announces Convertible Loan and Convertible Loan for Debt Conversion Transactions

Core Viewpoint - Search Minerals Inc. has announced a $3,000,000 unsecured convertible revolving loan from Petra Holdings Company Inc. to support the development of its mining projects and improve its financial structure [1][2][3]. Financing Details - The loan proceeds will be allocated for the development of the Foxtrot and Deep Fox mining projects, including equipment acquisition, site operations, infrastructure, technical assessments, environmental compliance, and general working capital [2]. - The loan will bear an interest rate of 15% per annum, payable quarterly, and the principal amount is due three years from the initial drawdown [4]. - The loan is convertible into common shares at a price of $0.50 per share for the first year, with subsequent conversions based on the average closing price on the TSX Venture Exchange [5]. Corporate Governance and Information Rights - Petra will have the right to nominate a director to the Company’s board as long as it holds at least 5% of the outstanding shares or has $500,000 principal amount outstanding under the loan [6]. - The Company is required to provide Petra with copies of all continuous disclosure documents filed on SEDAR+ [7]. Conditions Precedent - The closing of the loan is contingent upon the execution of a definitive loan agreement, approval from the Company’s Board of Directors, and approval from the TSX Venture Exchange [8]. Additional Debt Conversion - Search Minerals has also entered into an agreement with LeadFX Inc. to convert $404,053.73 of debt into a fixed-term unsecured convertible loan to assist in reorganizing its debt structure [9][10]. - Similar to the Petra loan, the LeadFX Loan will bear a 15% interest rate and is convertible into common shares at a price of $0.50 per share for the first year [11][12]. Company Overview - Search Minerals focuses on exploring and developing Critical Rare Earth Elements (CREE) and transition metals in the Port Hope Simpson - St. Lewis CREE District of South-East Labrador, controlling two primary deposits and several other prospects [14][15].