Searchlight Minerals Corp. raises $12.75 million through private placements and warrant exercises during January and February
February 11 2008 - 6:00AM
PR Newswire (US)
COMPANY WELL-POSITIONED FINANCIALLY AS IT APPROACHES START-UP PHASE
OF FIRST PRODUCTION MODULE HENDERSON, NV, Feb. 11
/PRNewswire-FirstCall/ -- Searchlight Minerals Corp. (OTC BB: SRCH)
(the "Company"), announced today that it has closed two concurrent
private placement offerings for aggregate gross proceeds of
US$5,250,000 (the "Offerings"), details of which are described
below. Along with the previously reported US$5,000,000 private
placement and the approximately US$2,500,000 received from recent
warrant exercises, the Company has received approximately
US$12,750,000 during January and February, 2008. "We are delighted
to announce the completion of these private placements and the
warrant exercise, which will allow the Company to pursue its
strategic objectives from a position of extraordinary financial
strength," observed Ian McNeil, Chief Executive Officer of
Searchlight Minerals Corp. "We now have approximately $18.5 million
of cash and equivalents in the bank, with approximately $3.5
million allocated to the final capital expenditures required to
complete our initial precious and base metals production module at
the Clarkdale Slag Project. The remainder of the funds raised will
be available as working capital and will provide us with
significant financial flexibility in planning for additions to
production capacity once the commercial feasibility of the first
module has been confirmed. We also plan to allocate funds towards
increasing our exploration efforts on the Searchlight Gold Project,
including a planned drill program." The Offerings The first private
placement (the "US Offering") raised gross proceeds of US$2,630,000
million through the sale of 1,643,750 Units at a price of $1.60 per
Unit to accredited investors as defined in Regulation D of the
Securities Act of 1933 (the "Securities Act"). Each Unit consisted
of one share of the Company's common stock and one-half of one
warrant, with each whole warrant entitling the holder to purchase
one additional share of common stock at a price of $2.40 per share
for a period of two years from the date of issuance. No commissions
were paid to agents as part of the US Offering. The second private
placement (the "Foreign Offering") raised gross proceeds of
US$2,620,000 million through the sale of 1,637,500 Units at a price
of $1.60 per Unit to non-US persons as contemplated under
Regulation S of the Securities Act. The Foreign Offering was
completed on the same terms as the US Offering. Commissions of
80,000 shares of the Company's stock were paid to three agents as
part of the Foreign Offering. In addition to the US and Foreign
Offerings, the Company had previously closed a US$5,000,000 private
placement, as reported on Form 8-K on January 3, 2008. Warrant
Exercise The Company also announced that it has issued an aggregate
of 3,890,000 shares of common stock upon the exercise of 100% of
the warrants that were issued by the Company in January 2006 and
not previously exercised. The warrant exercise provided the Company
with gross proceeds of approximately $2.5 million. Further details
on the warrant exercise can be found in the Form 8-K filed by the
Company with the SEC on February 5, 2008. Clarkdale Slag Project
Update The most critical grinding equipment, along with the
filtration and ion exchange units, have now been placed into the
building that will house the first production module, which will
consist of a full-scale production and processing circuit that is
expected to be able to process between 100 and 250 tons of slag
material per day. Building construction/refurbishment is largely
complete, and the majority of the remaining work involves the
plumbing and electrical infrastructure required to connect all of
the equipment that comprises the integrated production module.
Based upon information currently available to management, it now
appears that the production module will commence operating in
mid-April 2008. "We are fast approaching an exciting juncture in
the evolution of Searchlight Minerals Corp.," continued McNeil.
"While start-up of the initial production module has been slightly
delayed, relative to our initial schedule, by long lead times
involved in the procurement of certain equipment, we anticipate a
functioning module by the end of April. Our plans still call for
independent engineers to be underway with their feasibility work
this summer. Independent confirmation of feasibility will lay the
groundwork for expansion to the currently permitted 2,000
ton-per-day commercial production facility at Clarkdale, and our
recent private placements and warrant exercise will expand our
options regarding the financing of such expansion." About
Searchlight Minerals Corp. Searchlight Minerals Corp. is a dynamic
mineral exploration company focused on the acquisition and
development of projects in the southwestern United States. The
Company is currently involved in two projects: (1) the Clarkdale
Slag Project, located in Clarkdale, Arizona, which seeks to recover
precious and base metals from the reprocessing of slag material
produced from the smelting of copper ores from former mines in the
Jerome, Arizona area; and (2) the Searchlight Gold Project, which
involves exploration for precious metals on mining claims near
Searchlight, Nevada. The Clarkdale 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 is listed on the OTC Bulletin Board under the
symbol "SRCH". Additional information is available on the Company's
website at http://www.searchlightminerals.com/. This news release
does not constitute an offer to sell or a solicitation of an offer
to buy any of the Company's securities. The securities sold under
the abovementioned Offerings have not been registered under the
United States Securities Act of 1933, as amended and may not be
offered or sold within the United States or to U.S. persons unless
an exemption from such registration is available. Forward-Looking
Statements This Press Release may contain, in addition to
historical information, forward-looking statements. Statements in
this news release that are forward-looking statements are subject
to various risks and uncertainties concerning the specific factors
disclosed under the heading "Risk Factors" and elsewhere in the
Company's periodic filings with the U.S. Securities and Exchange
Commission. When used in this news release, the words such as
"could," "plan", "estimate", "expect", "intend", "may",
"potential", "should", 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 the Company's limited operating history,
uncertainties about the availability of additional financing,
geological or mechanical difficulties affecting the Company's
planned geological or other work programs, uncertainty of estimates
of mineralized material, operational risk, environmental risk,
financial risk, currency risk and other statements that are not
historical facts as disclosed under the heading "Risk Factors" and
elsewhere 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. CONTACT: Carl Ager, Vice President, at (702)
939-5247, or via email at DATASOURCE: Searchlight Minerals Corp.
CONTACT: Carl Ager, Vice President, at (702) 939-5247, or via email
at
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