Searchlight Resources Announces Private Placement Financing

Rhea-AI Summary

VANCOUVER, BC / ACCESSWIRE / March 4, 2021 / Searchlight Resources Inc. (US:CNYCF) has announced a private placement to issue up to 12,008,750 units at $0.08 per unit, aiming for proceeds of $960,700. Each unit includes one common share and one-half warrant, with a two-year warrant exercise price of $0.12. Additionally, 100,000 flow-through shares at $0.10 will be offered for $10,000. Proceeds will fund exploration on mineral properties and general working capital, subject to TSXV approval. The company also granted stock options for 500,000 shares at $0.09, expiring March 4, 2023.

Positive

• The financing aims to raise $960,700 for exploration and working capital, indicating growth potential.
• The issuance of stock options to consultants can incentivize performance and align interests.

Negative

• The cash commissions and finders' fees total $67,354, which could reduce net proceeds.
• The company has a limited operating history, which may pose risks for investors.

VANCOUVER, BC / ACCESSWIRE / March 4, 2021 / Searchlight Resources Inc. ("Searchlight" or the "Company") (TSXV:SCLT) (US:CNYCF) is pleased to announce a private placement financing of flow-through shares and non-flow-through units (the "Private Placement").

The Company will issue up to 12,008,750 units at a price of $0.08 per unit (the "Unit") for aggregate proceeds of $960,700. Each Unit consists of one common 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 $0.12 per common share for a period of 2 years from the date of issue.

The Company also will issue 100,000 flow-through ("FT") shares at a price of $0.10 per FT share for aggregate proceeds of $10,000. FT shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).

The Company expects to incur cash commissions and finders' fees of $67,354 and 708,925 broker and finders warrants which will expire 2 years 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 mineral properties and for general working capital.

The Company also announces that it has granted incentive stock options to consultants under its Stock Option Plan entitling them to purchase an aggregate of up to 500,000 common shares of the Company. The stock options are exercisable on or before March 4th, 2023 at a price of $0.09 per common share.

About Searchlight Resources Inc.

Searchlight Resources Inc. (TSXV:SCLT; US: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 gold and battery minerals throughout the Province, concentrating on projects with road access.

Searchlight holds a 427.6 square kilometre land position within the gold and base metal rich Flin Flon - Snow Lake Greenstone Belt. The Company is currently advancing its Bootleg Lake Gold Project located in Saskatchewan, less than 10 km from Flin Flon, Manitoba, and which hosts four past producing high-grade gold mines.

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 private placement financing amount for Searchlight Resources (CNYCF)?

Searchlight Resources aims to raise $960,700 through a private placement financing.

What are the terms for the units issued in the private placement of CNYCF?

Each unit will be issued at $0.08 and includes one common share and one-half warrant.

What will the proceeds from the financing be used for by Searchlight Resources?

Proceeds will fund exploration expenditures on mineral properties and general working capital.

What is the significance of flow-through shares in the CNYCF press release?

The company will issue 100,000 flow-through shares at $0.10 to provide tax benefits to investors.

When do the stock options granted by Searchlight Resources expire?

The stock options expire on March 4, 2023, at a price of $0.09 per share.