Search Minerals Funding Round
Search Minerals Announces C$1 Million Non-Brokered Private Placement for Labrador Projects
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Search Minerals Inc. is raising up to C$1,000,000 through a non-brokered private placement, the Canadian critical minerals explorer announced. The company trades on the TSX Venture Exchange under the ticker SMY and on OTC Pink markets as SHCMF. Ontario Farmer reported the financing is structured in two separate tranches targeting different types of investors.
The bulk of the raise — C$800,000 — comes from flow-through units tied to critical mineral exploration. Flow-through financing is a special Canadian tax structure that lets companies pass eligible exploration costs on to investors as tax deductions. The remaining funds come from a standard unit offering.
Foxtrot and Deep Fox Projects Drive the Raise
Search Minerals plans to spend the flow-through proceeds on what Canada's tax code calls 'Canadian exploration expenses.' Those funds will go directly toward work at the company's Foxtrot and Deep Fox projects in Labrador, according to Daily Herald Tribune. Both are rare earth element projects in one of Canada's most prospective critical mineral regions.
Rare earth elements are used in electric vehicle motors, wind turbines, and defense technology. Canada has pushed hard to develop domestic sources of these materials, reducing reliance on China. Search Minerals' Labrador projects sit in a region known for high-grade rare earth deposits.
Red Cloud Securities Steps In as Finder
Red Cloud Securities Inc. is acting as a finder for the financing, according to The Crag and Canyon. Finders help connect companies with investors but take a smaller role than full brokers — which is why the offering is called 'non-brokered.' Red Cloud is a Toronto-based firm focused on the mining sector.
Using a finder instead of a full broker typically means lower fees for the company. That keeps more money available for actual exploration work. For a raise of just C$1,000,000, minimizing costs matters.
US and UK Investors Locked Out of the Deal
The securities being issued will not be registered under the United States Securities Act of 1933. That means they cannot be offered or sold in the US without a registration filing or a specific legal exemption. Similar restrictions apply under UK securities laws, Sault Star noted.
These kinds of restrictions are standard practice for small Canadian mining companies raising money through private placements. They avoid the cost and complexity of US registration by limiting who can buy in. The offering is aimed primarily at Canadian investors.
Why Critical Mineral Financing Is Getting Easier in Canada
Canada's flow-through share system has long made it easier for junior miners to raise money. Investors get a tax break, and companies get cash for exploration without giving up debt. Ottawa has expanded the program in recent years to include critical minerals like rare earths, lithium, and cobalt.
Search Minerals is a small company, but the race to secure rare earth supply chains has drawn serious attention to junior explorers. The C$1,000,000 raise is modest, but flow-through financing lets every dollar go further by attracting investors who value the tax benefit as much as the upside.
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