Searchlight Resources Closes Second Tranche of Private Placement Financing

Rhea-AI Summary

Searchlight Resources Inc. announced the closure of the second tranche of its private placement, raising $495,600. This includes $215,000 from flow-through units and $280,600 from non-flow-through units. The second tranche issued 3,507,500 units priced at $0.08 per unit, each with a two-year warrant at $0.12. Additionally, 2,150,000 flow-through units were raised at $0.10 per unit, with warrants priced at $0.15. Funds will support exploration expenditures and general working capital.

Positive

• Raised a total of $495,600 in the second tranche of the private placement.
• Successful issuance of 3,507,500 units at $0.08 per unit, indicating strong investor interest.
• Flow-through units issued also provide tax benefits for investors.

Negative

• The company will incur approximately $34,594 in cash commissions and additional broker warrants, potentially affecting future cash flows.

VANCOUVER, BC / ACCESSWIRE / December 17, 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 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.

• Second tranche of private placement totaled $495,600,
  • Totaling $215,000 of flow through units and $280,600 non flow through units
• First Tranche of private placement closed December 2^nd , 2021, totaled $878,337,
  • Totaling $718,337 of flow through units and $160,000 non flow through units

In the second 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/678283/Searchlight-Resources-Closes-Second-Tranche-of-Private-Placement-Financing

FAQ

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

Searchlight Resources raised a total of $495,600 in the second tranche of its private placement.

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

In the second tranche, Searchlight Resources issued 3,507,500 units.

What is the exercise price of the warrants issued in the second tranche?

The exercise price of the warrants issued in the second tranche is $0.12 per common share.

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

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

When will the warrants from the second tranche expire?

The warrants from the second tranche will expire two years from the date of issue.