Searchlight Resources accrues CAD 364,000 through exercise of warrants

{kanada_flagge} For those who had wondered where the recent pressure on the share price of Searchlight Resources Inc. (TSXV:SCLT; FRA: 2CC2) came from got the explanation today. The company says it raised CAD364,600 through the exercise of approximately 7,292,000 flow-through warrants. The exercise period for the warrants would have expired on May 26, 2021.

Warrant holders like to short the underlying stock if they make a small profit in the process. This is exactly what was seen with Searchlight. Now that overhang is gone and the stock could be free to move higher again, given the right news. Searchlight now has 99,981,177 shares issued and outstanding.

Stephen Wallace, CEO of the company, plans to use the additional funds to expand the exploration program for the upcoming field season. Specifically, the funds will go toward exploration at the Kulyk Lake Critical Rare Earth Project, which Searchlight recently expanded, and at the Bootleg Lake gold property, where recent drilling has found new gold-bearing structures.

Searchlight Resources is exploring a large portfolio of properties in Saskatchewan. Searchlight’s growing portfolio includes four past-producing gold mines near the Flin Flon mining center, as well as large properties in Saskatchewan’s prolific greenstone belts that are 100% owned by the company.

CEO Stephen Wallace as a “cautious chess player” and strategist

John Kaiser, one of North America’s most prominent junior company stock market letter writers, recently included Searchlight on his “Bottom Fish” list. His description of CEO Stephen Wallace provides an apt portrait. Kaiser writes, “CEO Stephen Wallace strikes me as one of those careful chess players who move their pieces in such a way as to avoid excitement until an inevitable checkmate yawns”

“The real game is whether the Greenstone, with its large shear faces on the Saskatchewan side of the Flin Flon VMS district, has gold potential better than the former mom-and-pop operations that ran small mines in the past century would suggest. The 3-hole program below the Henning Mahoney workings may not look like much, but it is likely to yield high-grade gold flashes.” (Kaiser’s text pre-dates the release of the drill results; author’s note).

What Stehen Wallace is looking for, however, is proof that the narrow shoots have enough gold between them to warrant larger zones that prove to be the basis of deep-rooted orogenic systems, the near-surface portions of which are suitable for open-pit mining in the backyard of Flin Flon, which Hudbay has tendered as a possible future ghost town.”

That’s right on the money. Especially with his quiet manner, Stephen Wallace is always good for surprises. We’ll see.

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