Searchlight Resources Closes First Tranche of Private Placement Financing

Rhea-AI Summary

Searchlight Resources Inc. announced the closing of the first tranche of a private placement, raising $718,337 through the issuance of 8,979,208 units at $0.08 each. Each unit includes one common share and one-half warrant, exercisable at $0.12. Additionally, 1,600,000 flow-through units were issued, raising $160,000 at $0.10 each, allowing tax benefits under the Income Tax Act (Canada). The funds will support exploration and general working capital. Commissions of $24,220 and broker warrants were also announced.

Positive

• Successfully raised $718,337 through private placement.
• Issued flow-through units, raising an additional $160,000.
• Funds are designated for exploration expenditures and working capital.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / December 2, 2021 / Searchlight Resources Inc. ("Searchlight" or the "Company") (TSXV:SCLT)(OTC PINK:CNYCF)(FSE:2CC2) is pleased to announce that it has closed the first tranche of a private placement of flow-through and non-flow-through units (the "Private Placement") as previously announced by press release on November 24^th, 2021

The Company issued 8,979,208 units at a price of $0.08 per unit (the "Unit") for aggregate proceeds of $718,337. 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 issued 1,600,000 flow-through ("FT") units at a price of $0.10 per unit (the "FT Unit") for aggregate proceeds of $160,000. Each FT Unit consists of one flow-through common share and one-half of one common share purchase warrant (the "FT Warrant"). Each 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 years from the date of issue. 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 $24,220 and 288,750 broker warrants exercisable on the same terms and conditions as the warrants issued to investors, which will expire 2 years from the date of closing. 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.

About Searchlight Resources Inc.

Searchlight Resources Inc. (TSXV:SCLT; US:CYNCF; FSE 2CC2) 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, uranium and battery minerals throughout the Province,

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/675720/Searchlight-Resources-Closes-First-Tranche-of-Private-Placement-Financing

FAQ

What was the total amount raised in Searchlight Resources' private placement?

Searchlight Resources raised a total of $718,337 through the first tranche of its private placement.

What are the exercise prices for the warrants issued by Searchlight Resources?

The warrants issued in the private placement can be exercised at $0.12 for common shares and $0.15 for flow-through shares.

How many units were issued in the private placement by Searchlight Resources?

A total of 8,979,208 units were issued at a price of $0.08 per unit.

What will Searchlight Resources use the funds from the private placement for?

The funds will be used to finance exploration expenditures and for general working capital.

What are the terms for the broker warrants issued by Searchlight Resources?

The broker warrants will be exercisable on the same terms as the warrants issued to investors and will expire two years from the date of closing.