Searchlight Minerals Corp. Closes on $4 Million Capital Raise
23 Septembre 2013 - 12:00PM
Marketwired
Searchlight Minerals Corp. (OTCBB: SRCH) ("Searchlight" or the
"Company") today announced that it has closed on a $4 million
capital raise by the sale of five-year Senior Secured Convertible
Notes ("the Notes") to a number of accredited investors.
The Notes, which were issued on September 18, 2013, will pay
interest to investors semi-annually at a rate of 7% per annum and
are convertible at each holder's option into the Company's common
stock at a price of $0.40 per share. The Note holders have the
right to purchase pro rata up to $600,000 of additional separate
notes on or before September 18, 2014, on the same terms and
conditions as the original Notes. The Note holders also may elect
to have their Notes redeemed by the Company at par beginning
September 18, 2015. The Notes are secured by a lien on all of the
assets of the Company and its two subsidiaries.
The lead investors in the capital raise were affiliates of Luxor
Capital Group LLC ("Luxor"), the Company's largest shareholder, and
Martin Oring, the CEO of the Company. Members of Mr. Oring's family
also participated as investors in the capital raise. Luxor
purchased $2.6 million of the Notes, which increased its beneficial
ownership in the Company from approximately 17% to 21%.
"We are pleased that Luxor, our largest outside investor, has
elected to increase its ownership position in the Company by
participating as the lead investor in this capital raise," stated
Martin Oring, Chief Executive Officer of Searchlight. "The new
capital will be used to validate the technical and commercial
feasibility of the autoclave process in extracting gold and other
precious and base metals from the Clarkdale Slag Project. We are
currently working with the pregnant leach solution generated by our
large pilot autoclave tests to pursue the recovery of gold as
metal-in-hand. Once we are consistently able to achieve this
objective, we intend to commission a bankable feasibility study
that can demonstrate the economic viability of the Clarkdale Slag
Project."
About Searchlight Minerals Corp.
Searchlight Minerals Corp. is an exploration stage company
engaged in the acquisition and exploration of mineral properties
and slag reprocessing projects. The Company holds interests in two
mineral projects: (i) the Clarkdale Slag Project, located in
Clarkdale, Arizona, which is a reclamation project to recover
precious and base metals from the reprocessing of slag produced
from the smelting of copper ore mined at the United Verde Copper
Mine in Jerome, Arizona; and (ii) the Searchlight Gold Project,
which involves exploration for precious metals on mining claims
near Searchlight, Nevada. The Clarkdale Slag Project is the more
advanced of two ongoing projects that the Company is pursuing. The
Searchlight Gold Project is an early-stage gold exploration
endeavor on 3,200 acres located approximately 50 miles south of Las
Vegas, Nevada.
Searchlight Minerals Corp. is headquartered in Henderson,
Nevada, and its common stock trades on the OTCBB under the symbol
"SRCH." Additional information is available on the Company's
website at www.searchlightminerals.com and in the Company's filings
with the U.S. Securities and Exchange Commission.
Forward-Looking Statements
This Press Release may contain, in addition to historical
information, forward-looking statements. Statements in this Press
Release that are forward-looking statements are subject to various
risks and uncertainties concerning the specific factors disclosed
under the heading "Risk Factors" in the Company's periodic filings
with the Commission. When used in this Press Release in discussing
the recent developments on the Company's mineral projects,
including, without limitation, the resolution of certain issues
relating to the operation of production modules, the words such as
"believe," "could," "may," "expect" and similar expressions are
forward-looking statements. The risk factors that could cause
actual results to differ from these forward-looking statements
include, but are not restricted to technical issues with the
mineral projects that may affect production modules and primary
process components, challenges in moving from pilot plant scale to
production scale, the risk that actual recoveries of base and
precious metals or other minerals re-processed from the slag
material at the Clarkdale site will not be economically feasible,
uncertainty of estimates of mineralized material, operational risk,
the Company's limited operating history, uncertainties about the
availability of additional financing, geological or mechanical
difficulties affecting the Company's planned mineral recovery
programs, the risk that actual capital costs, operating costs and
economic returns may differ significantly from the Company's
estimates and uncertainty whether the results from the Company's
feasibility studies are sufficiently positive for the Company to
proceed with the construction of its processing facility,
operational risk, the impact of governmental and environmental
regulation, financial risk, currency risk volatility in the prices
of precious metals and other statements that are not historical
facts as disclosed under the heading "Risk Factors" in the
Company's periodic filings with securities regulators in the United
States. Consequently, risk factors including, but not limited to
the aforementioned, may result in significant delays to the
projected or anticipated production target dates.
For further information, please contact: RJ Falkner &
Company, Inc. Investor Relations Counsel (800) 377-9893 Email
Contact
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