Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) has announced agreements to settle outstanding indebtedness totaling $799,550 through the issuance of common shares, a move that preserves cash and bolsters the company's financial position. The company entered into agreements to settle an aggregate $395,496 in debt by issuing 790,992 common shares at a deemed price of $0.50 per share. The shares are subject to a four-month-and-one-day statutory hold period and require approval from the TSX Venture Exchange.
In a separate transaction, Search Minerals confirmed it has received TSX Venture Exchange approval to settle an additional $404,054 in debt owed to LeadFX through the issuance of 808,107 common shares, which were issued on December 1, 2025. These shares are also subject to a four-month hold period, and the issuance fully extinguishes that obligation. The debt settlements are part of the company's strategy to manage liabilities while focusing on its core business of exploring for and developing Critical Rare Earths Elements (CREE) and transition metals.
Search Minerals is focused on the Port Hope Simpson – St. Lewis CREE District in South-East Labrador, where it controls two deposits (Foxtrot and Deep Fox), two drill-ready prospects (Fox Meadow and Silver Fox), and numerous other CREE prospects, including Fox Valley, Foxy Lady, and Awesome Fox, along a 64-kilometer belt. The company also holds assets in the Red Wine CREE District of central Labrador, such as the drill-ready Two Tom Lake CREE-Be-Nb deposit, the Mann #1 CREE-Nb-Be prospect, and the Merlot CREE Prospect.
The debt settlement through share issuance is a common practice for junior mining companies to conserve cash for exploration and development activities. By converting debt into equity, Search Minerals reduces its financial obligations and strengthens its balance sheet, which can be crucial for advancing its projects. The company's focus on rare earth elements positions it in a sector of strategic importance, as these materials are essential for various high-tech and green energy applications.
For more details on the original announcement, visit https://ibn.fm/yoqN2. The latest news and updates relating to SHCMF are available in the company’s newsroom at https://ibn.fm/SHCMF.
