Search Minerals Inc. has announced agreements to settle an aggregate $799,550 in outstanding indebtedness through the issuance of common shares, a move designed to preserve cash and strengthen its financial position. The company entered into agreements to settle $395,496 in debt by issuing 790,992 common shares at a deemed price of $0.50 per share, with these shares subject to a four-month-and-one-day statutory hold period and requiring TSX Venture Exchange approval. Additionally, the company confirmed it has received TSX Venture Exchange approval to settle an additional $404,054 in debt owed to LeadFX through the issuance of 808,107 common shares, which were issued on December 1, 2025, and are subject to a four-month hold period. This transaction fully extinguishes the company's obligation to LeadFX, providing greater financial flexibility as Search Minerals continues its exploration and development activities.
The debt settlement through share issuances represents a strategic financial decision that allows the company to conserve cash resources while addressing outstanding obligations. This approach is particularly significant for mineral exploration companies that require substantial capital for ongoing operations and development projects. By converting debt to equity, Search Minerals reduces its immediate cash outflows and improves its balance sheet position. The full press release detailing the debt settlement arrangements can be viewed at https://ibn.fm/yoqN2.
Search Minerals is focused on exploring for and developing Critical Rare Earth Elements (CREE) as well as transition metals Zirconium and Hafnium within the emerging Port Hope Simpson – St. Lewis CREE District of South-East Labrador. The company controls two deposits (Foxtrot and Deep Fox), two drill-ready prospects (Fox Meadow and Silver Fox), and numerous other CREE prospects along a 64-kilometer long belt forming a CREE District in Labrador. The company also controls additional CREE assets in the Red Wine CREE District of central Labrador, including the drill-ready Two Tom Lake CREE-Be-Nb deposit, the Mann #1 CREE-Nb-Be prospect and Merlot CREE Prospect.
This financial restructuring comes at a time when demand for critical rare earth elements continues to grow globally, particularly for applications in renewable energy technologies, electronics, and defense systems. The company's focus on these strategic minerals positions it to potentially benefit from increasing market demand and government initiatives supporting domestic supply chains for critical minerals. The latest news and updates relating to Search Minerals are available in the company's newsroom at https://ibn.fm/SHCMF.
