Searchlight Resources Announces Critical Metals Flow-Through Private Placement

Rhea-AI Summary

Searchlight Resources Inc. (CNYCF) announced a private placement financing for up to 4,761,905 Critical Metals flow-through units priced at $0.105 per unit, aiming to raise $500,000.

Each unit includes a share and a warrant allowing the purchase of an additional share at $0.15 for two years. The funds will support exploration at the flagship Kulyk Lake property. The financing is subject to TSXV approval, with commissions expected at $37,500 and additional warrants for brokers.

Positive

• Private placement financing aims to raise $500,000 to fund exploration.
• Potential tax benefits from Critical Metals flow-through shares.
• Exploration focus on promising battery minerals and gold.

Negative

• Financing reliant on TSXV approval, which introduces uncertainty.
• Cash commissions and finders' fees reduce net proceeds available for exploration.

VANCOUVER, BC / ACCESSWIRE / July 27, 2022 / Searchlight Resources Inc. ("Searchlight" or the "Company") (TSXV:SCLT, OTC PINK:CNYCF, Frankfurt:2CC2) is pleased to announce a private placement financing of Critical Metals flow-through units (the "Private Placement").

The Company will issue up to 4,761,905 units at a price of $0.105 per unit (the "Unit") for aggregate proceeds of $500,000. Each Unit consists of one Critical Metals flow-through share and one-half of one common share purchase warrant (the "Warrant"). Each Warrant will entitle the holder to purchase one additional common share of the Company at an exercise price of $0.15 per common share for a period of two years from the date of issue. The Critical Metals flow-through shares will entitle the holder to receive the tax benefits applicable to Critical Metals flow-through shares, in accordance with provisions of the Income Tax Act (Canada).

The Company expects to incur cash commissions and finders' fees of $37,500 and 476,190 broker and finders warrants which will expire one year from the date of closing.

The financing is subject to TSXV approval.

All the securities issued are subject to a four-month hold period from the date of closing.

Searchlight intends to use the proceeds of the Private Placement to fund exploration expenditures on its portfolio of Critical Metals mineral properties, and expand its exploration activities at its flagship property, Kulyk Lake.

About Searchlight Resources Inc.
Searchlight Resources Inc. (TSXV:SCLT; OTC PINK:CYNCF) is a Canadian mineral exploration and development company focused on Saskatchewan, Canada, which has been ranked as the top location for mining investment in Canada by the Fraser Institute. Exploration focus is on battery minerals and gold throughout the Province, concentrating on projects with nearby infrastructure.

Searchlight holds a 317.1 square kilometre land position at Kulyk Lake within the Wollaston Domain in Northern Saskatchewan, where it has recently detected a new area of extensive uranium radioactivity and rare earth targets.

On behalf of the Board of Directors,

"Stephen Wallace"

Stephen Wallace, President, CEO and Director

SEARCHLIGHT RESOURCES INC.

For further information, visit the Company's website at www.searchlightresources.com or contact:

Searchlight Resources Inc.
Alf Stewart, VP Corporate Development
(604) 331-9326
info@searchlightresources.com

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE: Searchlight Resources Inc.

View source version on accesswire.com:
https://www.accesswire.com/709762/Searchlight-Resources-Announces-Critical-Metals-Flow-Through-Private-Placement

FAQ

What is Searchlight Resources Inc.'s latest financing announcement?

Searchlight Resources Inc. announced a private placement financing of up to 4,761,905 Critical Metals flow-through units to raise $500,000.

What is the stock symbol for Searchlight Resources?

The stock symbol for Searchlight Resources is CNYCF.

What will the proceeds from the private placement be used for?

The proceeds will be used to fund exploration expenditures at Kulyk Lake and expand exploration activities on its Critical Metals mineral properties.

What is the expected price of each unit in the private placement?

Each unit in the private placement is priced at $0.105.

Are there any fees associated with the private placement?

Yes, the company expects to incur cash commissions and finders' fees of $37,500.