Minerals Search Company Announces Savings-Based Loan Plans and Debt-to-Equity Transformation Strategies
Search Minerals Secures $3.5 Million in Student Loans for Mining Project
Search Minerals Inc., a mining business based in Canada, has announced that it has entered into two loan agreements, totaling $3.5 million. The news was released via QuoteMedia and can be found here.
The principal amount of the first loan, worth $3,000,000, has been granted by Petra Holdings Company Inc. This loan is convertible into common shares of Search Minerals, and it bears interest at a rate of 15% per annum, payable quarterly in arrears. The loan will be used for the development of Search Minerals' Foxtrot and Deep Fox mining project.
In addition, Search Minerals has also entered into an agreement with LeadFX Inc. to convert a debt of $404,053.73 into a loan with similar terms. The closing of this loan is subject to the execution and delivery of a definitive loan agreement between Search Minerals and LeadFX.
Any shares issued from these loans will be subject to a hold period of four months and one day. The approval of Search Minerals' Board of Directors and the TSX Venture Exchange (TSXV) is required for the closing of both loans. The TSXV does not accept responsibility for the adequacy or accuracy of the release.
The debt that was incurred during a period when Search Minerals was unable to pay trade payables and required financial assistance. For as long as at least $500,000 is outstanding under the Petra loan or Petra Holdings Company Inc. owns at least 5% of Search Minerals' common shares, Petra will have the right to nominate Michael Pearson for a director position.
It is important to note that the Forward-Looking Information in the news release involves known and unknown risks, uncertainties, and other factors which may cause actual results to differ materially from those expressed or implied by the Forward-Looking Information.
The conversion price for the shares issued from the loans will be $0.50 for the first year and the average of the closing price on TSXV for the following 10 days thereafter. The loan agreements are significant steps for Search Minerals as it moves forward with its mining projects.
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