Searchlight Resources Closes Second Tranche of Private Placement Financing

Rhea-AI Summary

Searchlight Resources Inc. has successfully closed the second and final tranche of its private placement, raising a total of $280,600 by issuing 3,507,500 units priced at $0.08 per unit. Each unit consists of one common share and a half warrant, with a two-year exercise price of $0.12. Additionally, 2,150,000 flow-through units were issued for $215,000. Proceeds will fund exploration expenditures and general working capital. The securities are subject to a four-month hold period.

Positive

• Raised a total of $495,600 from the private placement.
• Funds will support exploration activities in mineral properties.

Negative

• Potential dilution of existing shareholders due to new share issuance.

VANCOUVER, BC / ACCESSWIRE / December 23, 2021 / Searchlight Resources Inc. ("Searchlight" or the "Company") (TSXV:SCLT)(OTC PINK:CNYCF)(FSE:2CC2) is pleased to announce that it has closed the second and final 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

In this tranche the Company issued 3,507,500 units at a price of $0.08 per unit (the "Unit") for aggregate proceeds of $280,600. 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 2,150,000 flow-through ("FT") units at a price of $0.10 per unit (the "FT Unit") for aggregate proceeds of $215,000. 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 $34,594 and 401,800 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/679385/Searchlight-Resources-Closes-Second-Tranche-of-Private-Placement-Financing

FAQ

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

Searchlight Resources raised a total of $495,600 from its private placement.

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

The proceeds will be used for exploration expenditures and general working capital.

What are the terms of the warrants issued in Searchlight Resources' private placement?

Each warrant allows the purchase of one additional common share at an exercise price of $0.12 for a period of two years.

When was the second tranche of the private placement announced?

The second tranche of the private placement was announced on December 23, 2021.

What is the ticker symbol for Searchlight Resources?

The ticker symbol for Searchlight Resources is CNYCF on the OTC PINK market.