Searchlight Minerals, the Arizona/Nevada-focused, exploration stage mineral developer known for their Clarkdale Slag Project (slag reclamation project pulling in precious and base minerals from the United Verde Copper Mine) and their Searchlight Gold Project, reported that the equity financing deal with Luxor Capital Group, LP was successfully completed (deal occurred yesterday, June 7).
In addition to the rousing news of the equity financing deal, that has seen 4.5M shares of SRCH common stock change hands at the price of $0.90/share, generating proceeds of some $4.05M, Searchlight also announced that 35-year international banking and financial business management veteran, John E. Mack has been appointed to the Board as an Independent Director.
This deal brings Luxor’s beneficial ownership to 17.48% and the company granted a waiver in conjunction with the deal to increase allowable ownership level accordingly (as per the Shareholder Rights Plan and so as not to trigger its provisions against such an occurrence), whilst maintaining the appropriate role and participation level for Luxor by limiting voting rights to a maximum of 15% of shares outstanding (via a Voting Rights Agreement that secures the 15% ownership level of shares outstanding through a proxy activated if Luxor ever goes over 15%).
Chairman and CEO of SRCH, Martin Oring, seemed ecstatic at the extension of this relationship with the eminent Luxor firm, pledging that this infusion will drive the AZ/NV projects forward. Oring also noted that Luxor has been there to provide critical actionable intelligence at key junctures for the company and this elective investment of $4.05M not only strengthens the financial/strategic bond between SRCH and the company’s largest shareholder, it will stabilize the late-stage workflow for the company’s 20M-ton Clarkdale Slag project, allowing for important milestones to be aggressed capably. Similarly it will round out the approach to the Searchlight Gold project.
Between the two projects, SRCH will eventually be producing a considerable amount of gold and the near-term economics/logistics of the Clarkdale Slag project will benefit the most, as in this case we have immediate access to greater throughput via the capital infusion.
Moreover, the appointing of veteran financial officer John Mack, after the recent (friendly/zero conflict) departure of J.C. McFarland from the Board of Directors, has infused SRCH with a new sense of optimism and vigor.
Oring offered his most sincere appreciation for the distinguished track record McFarland achieved while with the company and pointed to John Mack’s extensive business and financial experience as a huge win for the company and its shareholders (Senior Managing Exec CFO at Tokyo’s Shinsei Bank 2002-2005; 25 years in the trenches at Bank of America and its predecessor companies; 12 years at NationsBank and NCNB Corp.; on the Board over at Flowers National Bank, Incapital Holdings LLC, Medley Capital Corp., and Residential Capital, LLC; Vice-Chairman/Director at Islandsbanki hf in Reykjavik; MBA from U of Virginia School of Business; Bachelor’s in Economics from Davidson College).
Searchlight has assembled the personnel, partners, and capital to really put things into a higher gear at the company’s operations in AZ/NV and will continue to provide overwatch from their corporate HQ in Henderson, NV as things progress.
More information about today’s deal, the Board appointment, and the company’s operations can be found at the Searchlight Minerals Corp. website: www.SearchlightMinerals.com
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