Searchlight Resources Announces Private Placement Financing

Rhea-AI Summary

Searchlight Resources Inc. has announced a non-brokered private placement of up to $2,000,000 in flow-through and non-flow-through units. The offering is aimed at accredited investors in Canada and internationally. Searchlight plans to issue 10,000,000 FT units priced at $0.10 each, generating $1,000,000, and 12,500,000 NFT units at $0.08 each, also raising $1,000,000. Proceeds will fund exploration on mineral properties and working capital, subject to regulatory approvals.

Positive

• Raising up to $2,000,000 through a private placement enhances capital for exploration.
• The offering includes both flow-through and non-flow-through units, appealing to diverse investors.
• Proceeds will support exploration expenditures focused on uranium, gold, and battery minerals.

Negative

• The offering, although beneficial, may cause shareholder dilution.
• Dependence on regulatory approval adds uncertainty to the offering's success.

VANCOUVER, BC / ACCESSWIRE / November 24, 2021 / Searchlight Resources Inc. ("Searchlight" or the "Company") (TSXV:SCLT)(OTC PINK:CNYCF)(FSE:2CC2) is pleased to announce a non-brokered private placement of flow-through units (the "FT Units") and non-flow-through units (the "NFT Units") for gross proceeds of up to $2,000,000 (the "Offering"). The Offering will be available to Canadian and international accredited investors. Red Cloud Securities Inc. of Toronto, Ontario, has agreed to act as a finder for Searchlight on a "best efforts" basis for the Offering.

The Company intends to issue up to 10,000,000 FT units at a price of $0.10 per unit for aggregate proceeds of up to $1,000,000. Each FT Unit will consist of one flow-through common share and one-half of one common share purchase warrant (the "FT Warrants"). Each full FT 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 2 year from the date of issue.

The Company also intends to issue up to 12,500,000 NFT units at a price of $0.08 per unit for aggregate proceeds of up to $1,000,000. Each NFT Unit will consist of one common share and one-half of one common share purchase warrant (the "NFT Warrants"). Each full NFT Warrant will entitle the holder to purchase one additional common share of the Company at an exercise price of $0.12 per common share for a period of 2 year from the date of issue.

Finder's fees will be payable to Red Cloud and other qualified finders in connection with the Offering consisting of 7.0% cash and 7.0% finder's warrants. All the securities issuable will be subject to a four-month hold period from the date of closing. Closing of the proposed Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval from the TSX Venture Exchange.

Searchlight intends to use the proceeds of the Offering to fund exploration expenditures on its portfolio of mineral properties and for general working capital.

Qualified Person

Stephen Wallace, P.Geo., is Searchlight's Qualified Person within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

About Searchlight Resources Inc.

Searchlight Resources Inc. (TSX.V: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 uranium, gold and battery minerals throughout the Province, concentrating on projects with road access.

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.

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FAQ

What is the purpose of Searchlight Resources' recent private placement (CNYCF)?

The private placement aims to raise up to $2,000,000 to fund exploration expenditures and for general working capital.

What types of units are being offered in Searchlight Resources' private placement?

The offering includes flow-through units (FT Units) at $0.10 and non-flow-through units (NFT Units) at $0.08.

Who is acting as the finder for Searchlight Resources' private placement?

Red Cloud Securities Inc. is acting as a finder on a 'best efforts' basis for the offering.

What is the exercise price for the warrants associated with Searchlight's private placement (CNYCF)?

The FT Warrants have an exercise price of $0.15, while the NFT Warrants are priced at $0.12.

What are the conditions for the closing of Searchlight Resources' private placement?

Closing is subject to obtaining necessary corporate and regulatory approvals, including TSX Venture Exchange approval.