Search Minerals Inc. (TSX.V: SMY) (OTC: SHCMF) has issued an unsecured convertible note totaling $367,562 to its Indigenous partner, the NunatuKavut Community Council, in full settlement of existing indebtedness under a prior note issued in October 2024, including accrued interest. The transaction does not provide new capital or cash proceeds but extends the company’s repayment obligations while consolidating existing debt, reflecting continued support from the partner and the longstanding relationship tied to the company’s Newfoundland and Labrador projects, according to interim CEO Jason Macintosh.
The note conversion underscores the strategic importance of the partnership for Search Minerals as it advances its critical rare earth elements (CREE) projects in the Port Hope Simpson – St. Lewis CREE District of South-east Labrador. The company controls a belt 64 km long and 2 km wide that is road accessible, on tidewater, and located near three local communities. Search has completed a preliminary economic assessment report with resource estimates for its FOXTROT and DEEP FOX projects and is working on four exploration prospects: FOX MEADOW, SILVER FOX, FOX RUN, and AWESOME FOX.
Search Minerals has also continued to optimize its patented Direct Extraction Process technology with support from the Department of Energy and Mines, Government of Newfoundland and Labrador, and the Atlantic Canada Opportunity Agency. The company has completed two pilot plant operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.
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This move highlights the importance of maintaining strong relationships with Indigenous partners in resource development, particularly in jurisdictions like Labrador where community support is critical for project advancement. By settling the debt through a convertible note, Search Minerals demonstrates its commitment to the NunatuKavut Community Council while preserving cash for operational needs.
