Search Minerals Secures $300,000 Convertible Note from Indigenous Partner

Search Minerals Inc. (TSXV: SMY) has successfully closed the first tranche of its non-transferable unsecured convertible notes (the "Convertible Notes") for a principal amount and gross proceeds of $300,000. The company announced this strategic partnership with the NunatuKavut Community Council (NCC), an indigenous partner, on October 7, 2024. This investment addresses Search Minerals' immediate financial needs and aligns with its long-term growth strategy.

The Convertible Notes have a maturity date of one year from the date of issuance and bear simple interest at a rate of 15% per annum. Following the full revocation of the cease trade order (CTO) and prior to the maturity date, principal and interest under the Convertible Notes may be converted into shares at the option of the noteholder. The conversion price of the principal will be $0.05 per share, and the conversion price of interest into shares will be as permitted by the policies of the TSX Venture Exchange (TSXV).


This partnership not only addresses Search Minerals' immediate financial needs but also demonstrates the company's commitment to corporate social responsibility (CSR) initiatives. By involving an indigenous partner, Search Minerals strengthens its social responsibility and community relations. The NCC's investment in the project is indicative of its importance to the indigenous community and the Province of Newfoundland and Labrador.

The timing of this investment aligns with Search Minerals' overall financial and operational plans. The funds raised during the current CTO will be used to update financial information, open the St. Lewis field office, and prepare for the return of Dr. Miller and the local workforce. This will enable the company to initiate exploration work in the nearby area and complete the obligations outlined in the use of proceeds during the partial revocation of the CTO order.


In conclusion, Search Minerals' strategic partnership with the NunatuKavut Community Council addresses the company's immediate financial needs and aligns with its long-term growth strategy. This investment not only provides much-needed capital but also strengthens the company's commitment to CSR initiatives and community relations. As Search Minerals continues to work towards lifting the CTO and restarting its operations, this partnership will play a crucial role in its success.