Curated News
By: NewsRamp Editorial Staff
December 03, 2025
Search Minerals Settles Debt with Shares, Preserves Cash for Rare Earth Projects
TLDR
- Search Minerals gains financial advantage by settling debt with shares instead of cash, preserving capital for critical rare earth element exploration.
- Search Minerals issued 808,107 shares at $0.50 each to settle $404,053.73 in debt with LeadFX, utilizing MI 61-101 exemptions.
- This debt settlement strengthens Search Minerals' financial position to advance rare earth element projects, supporting future sustainable technology development.
- Search Minerals creatively settled debt by issuing shares instead of taking a loan, maintaining focus on Labrador's rare earth element deposits.
Impact - Why it Matters
This transaction matters because it demonstrates Search Minerals' strategic financial management during a critical period for rare earth element development. As global demand for critical minerals essential to clean energy technologies, electronics, and defense applications continues to surge, companies like Search Minerals play a vital role in securing North American supply chains. By settling debt through equity rather than taking on additional loans, the company preserves valuable cash resources needed for exploration and development activities in Labrador's promising CREE districts. For investors, this represents prudent capital allocation that strengthens the balance sheet while maintaining focus on core operational objectives. The rare earth sector has gained increasing geopolitical importance as nations seek to reduce dependence on foreign sources, particularly from China, making domestic projects like Search Minerals' Labrador operations strategically significant. This financial maneuver positions the company better to advance its portfolio of deposits and prospects, potentially contributing to North America's critical mineral independence while creating value for stakeholders through responsible resource development.
Summary
Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF), a company focused on exploring and developing Critical Rare Earth Elements (CREE) and transition metals in Labrador, has strategically settled $404,053.73 of outstanding debt with related party LeadFX Inc. through a shares-for-debt transaction. Instead of proceeding with a previously planned unsecured convertible loan, the company issued 808,107 common shares at a deemed price of $0.50 per share, a move designed to preserve cash and strengthen its balance sheet. The transaction falls under MI 61-101 regulations but qualifies for exemptions since the shares' value doesn't exceed 25% of Search Minerals' market capitalization, and no new control person will be created, with the shares carrying a standard four-month-and-one-day statutory hold period.
The company's operations center on the emerging Port Hope Simpson – St. Lewis CREE District in South-East Labrador, where it controls significant assets including the Foxtrot and Deep Fox deposits, drill-ready prospects like Fox Meadow and Silver Fox, and numerous other CREE prospects along a 64-kilometer belt. Additionally, Search Minerals maintains assets in the Red Wine CREE District of central Labrador, featuring the Two Tom Lake CREE-Be-Nb deposit and other promising prospects. This strategic debt settlement allows the company to maintain focus on developing these critical mineral resources while optimizing its financial position.
The news was disseminated through MiningNewsWire, a specialized communications platform within the Dynamic Brand Portfolio of IBN that provides extensive distribution and enhancement services for mining sector news. Investors can access the full press release and stay updated through the company's newsroom, while MiningNewsWire offers comprehensive corporate communications solutions across multiple channels including wire distribution, editorial syndication, and social media networks, ensuring broad reach within the investment community.
Source Statement
This curated news summary relied on content disributed by InvestorBrandNetwork (IBN). Read the original source here, Search Minerals Settles Debt with Shares, Preserves Cash for Rare Earth Projects
