HENDERSON, NV--(Marketwired - Aug 20, 2013) - Searchlight Minerals Corp. (OTCQB: SRCH) ("Searchlight" or the "Company") today announced that it has entered into a binding commitment with Luxor Capital Group ("Luxor") for the issuance of a $2,600,000 secured convertible note (the "Luxor Note"). The Luxor Note will bear interest at a rate of 7% per annum and shall be convertible at the holder's option into common shares of the Company at a price per share of $0.40.
Luxor may elect to have the Luxor Note redeemed by the Company at par beginning on the second anniversary of the closing date of the transaction. In addition, during the period ending on the first anniversary of the closing, Luxor may elect to purchase up to an additional $390,000 of Notes under identical terms as those described above. The Luxor Note allows the Company to seek up to an additional $2,400,000 in commitments from other investors under identical terms, which will also include the election to purchase up to an additional $360,000 of Notes during the period ending on the first anniversary of the closing. The Company is in the process of securing these additional commitments from accredited investors.
"We are very pleased that Luxor Capital Partners, our largest shareholder, has elected to increase its position in the Company by participating as the lead investor in this capital raise," stated Martin Oring, Chief Executive Officer of Searchlight Minerals Corp. "These funds will be used to further our gold extraction tests in an effort to demonstrate our ability to complete the autoclave circuit and to produce physical gold."
About Searchlight Minerals Corp.
Searchlight Minerals Corp. is an exploration stage company engaged in the acquisition and exploration of mineral properties and slag reprocessing projects. The Company holds interests in two mineral projects: (i) the Clarkdale Slag Project, located in Clarkdale, Arizona, which is a reclamation project to recover precious and base metals from the reprocessing of slag produced from the smelting of copper ore mined at the United Verde Copper Mine in Jerome, Arizona; and (ii) the Searchlight Gold Project, which involves exploration for precious metals on mining claims near Searchlight, Nevada. The Clarkdale Slag 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 trades on the OTCQB under the symbol "SRCH." Additional information is available on the Company's website at www.searchlightminerals.com and in the Company's filings with the U.S. Securities and Exchange Commission.