VANCOUVER, BRITISH COLUMBIA--(June 28, 2011) -Search Minerals Inc. ("Search" or the "Company") (TSX VENTURE:SMY) is pleased to announce that, plans to accelerate the exercise of its option to acquire a 50% interest Great Western Minerals Group Ltd. ("GWMG") (TSX VENTURE:GWG) in the Red Wine Property controlled by Search, in order to create a joint venture (the "Joint Venture") as detailed in the option agreement (the "Option Agreement") signed on July 23, 2010.
Under the terms of the Option Agreement, GWMG has undertaken all of its commitments including, share and cash payments for the first two periods (550,000 shares and $125,000) and has made funded expenditures of $1.45 million for the work commitment (the "WorkCommitment"). Additionally, GWMG has carried out a metallurgical program of approximately $50,000 and has therefore met all of the Work Commitment obligations under the terms of the Option Agreement.
In order to complete its obligations and acquire a 50% interest in the Red Wine Property, GWGM will issue to Search an additional 500,000 shares and make a $100,000 cash payment. Once this has been completed, and under the terms of the Option Agreement, a 50-50 Joint Venture will have been formed between Search and GWMG (Section 5.0 of the Option Agreement) and Search and GWMG will proceed under the terms detailed in Schedule "B" of the Option Agreement.
Jim Clucas, President and Chief Executive Officer of Search stated: "We are delighted that GWMG has opted to accelerate the Joint Venture with Search at its Red Wine REE Property. Furthermore, we are very encouraged by the work program results achieved in 2010 by Search with GWMG's funding, and are pleased that our partners are continuing to advance the project with funding and a full Joint Venture for Search's aggressive 2011 work program at the Red Wine Complex."
About Search Minerals Inc.
Search Minerals Inc. (TSX VENTURE:SMY) is a TSX Venture Exchange listed company, headquartered in Vancouver, B.C. Search is the discoverer of the Port Hope Simpson REE District, a highly prospective light and heavy REE belt located in southeast Labrador where the company controls a dominant land position in a belt 135km long and up to 12km wide. In addition, Search has a number of other mineral prospects in its portfolio located in Newfoundland and Labrador, including a number of claims in the Strange Lake Complex, where Quest Rare Minerals has an earn-in agreement with the Company; and at the Red Wine Complex, where Great Western Minerals Group has an earn-in agreement with the Company.
Furthermore, Search Minerals is the owner of patents relating to the Starved Acid Leaching Technology ("SALT"), a process with the potential to aid in the recovery of certain metals.
Search Minerals is lead by a management team and board with a proven track record in the mining industry. The Company has a team with deep geological and metallurgical expertise lead by Dr. Randy Miller and Dr. David Dreisinger. The Company is well-funded and has an aggressive exploration program planned for the remainder of 2011.
All material information on the Company may be found on its website at www.searchminerals.ca and on SEDAR at sedar.com.
This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward- looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in Search's public documents filed on SEDAR at www.sedar.com. Although Search believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Search disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility of the adequacy or accuracy of this release.
Search Minerals Inc.
President and CEO
Search Minerals Inc.
Joanne C. Jobin
Investor Relations Manager