Geomega Resources Inc. (“
Geomega” or the
“
Corporation”) (TSX:V.GMA) (OTC: GOMRF), a
developer of clean technologies for the mining, refining and
recycling of rare earths, is pleased to announce that it has
secured additional debt financing of $1,326,000, which will be
added to the funds required to build the rare earth magnet
recycling demonstration plant in Saint-Bruno-de-Montarville,
Quebec. Project financing will be provided by Investissement Quebec
(“IQ”), who will be acting as agent on behalf of the Quebec
Government to secure funding for the project.
The amount is in addition to the first tranche
amount of $1,720,000 that was announced on February 7, 2020. The
debt financing aggregate amount will now total $3,046,000 and will
have the same favorable terms as the first tranche, including the
fact that the debt is non-interest bearing. The increased amount of
debt financing is based on an updated project evaluated at
$4,800,000 including capital costs and working capital (which was
previously estimated at $3,200,000). The increased cost results
from internal evaluations by the Corporation based on the completed
engineering work and adjusts for delays, associated with
restrictions imposed by the COVID pandemic and engineering work,
and higher costs of engineering and construction.
The proposed use of funds will be towards the
purchase of equipment, as well as engineering and construction of
the demonstration plant. This non dilutive debt financing for the
Corporation has no warrants or finder’s fees attached. This debt
financing will supplement the funds currently held by the
Corporation and other non-reimbursable grants that Geomega has
applied for and, in certain cases, obtained (see 2020 Annual
MD&A report of the Corporation for more details).
“We are very grateful for the continuing support
from the Government of Québec which has once again demonstrated its
commitment and leadership in respect of home grown innovative
technology initiatives with this follow-on financing which builds
upon their first investment in our project earlier this year. The
Quebec Government is working hard to help establish clean, and
innovative production of the critical metals that will
simultaneously create jobs and produce materials needed for the
industries of tomorrow. Its commitment to transformation and
recycling of rare earth elements will help attract further
downstream industries and establish a clean and sustainable rare
earths refining industry in Quebec. With this funding portion now
complete, we are looking forward to the completion of pilot testing
which we began in August 2020 and then proceed to finalize
engineering and begin construction.” commented Kiril Mugerman,
President & CEO of Geomega. “This comprehensive investment by
our government is intended to encourage the development of a green
economy. This is a major aspect of the Geomega project. Also,
recycling rare earths elements is an avenue for the enhancement and
development of critical and strategic minerals in Quebec. With
technologies and the energy transition, demand is strong for these
minerals.” Jonatan Julien, Minister of Energy and Natural
Resources, Minister responsible for the Côte-Nord region.
The Corporation will continue to update
shareholders as the construction of the demonstration plant
progresses.
About Geomega
(www.geomega.ca)Based in
Boucherville and St-Bruno, Canada, Geomega Resources has developed
a proprietary, environmentally friendly “ISR Technology” that
recycles rare earth elements with focus on the permanent magnet
industry and produces four high demand, high price, rare earth
elements (HHREE – specifically Nd, Pr, Tb, Dy).
The Corporation is targeting 2020 for initial
production from its demonstration plant to supply HHREE’s to North
America and other parts of the world.
Geomega also owns the Montviel rare earth
carbonatite deposit and holds over 16.8M shares, representing
approximately 19% of the issued and outstanding shares of Kintavar
Exploration Inc. (KTR.V), a mineral exploration company that is
advancing the Mitchi stratiform copper project in Quebec.
About Innord Inc.Innord is a
private wholly owned subsidiary of Geomega. The goal of Innord is
to develop and optimize the proprietary ISR Technology for
extraction and separation of rare earth elements. Innord focuses on
scaling up the technology through processing rare earth enriched
secondary sources (recycling of end of life and manufacturing
waste) and then to apply the technology to primary mining
feeds.
About
Investissement
QuébecInvestissement Quebec's mission is to
actively participate in Québec’s economic development by
stimulating innovation in businesses, entrepreneurship and the
growth of investment and exports in all regions of Québec. The
Company offers businesses and entrepreneurs services, such as
technological support, as well as adapted financial solutions and
investments. Through its Investissement Québec International
division, the Company is responsible for supporting export
companies and ensuring the prospecting of foreign investments.
For further information, please
contact:
Kiril MugermanPresident and CEOGeomega450-641-5119
ext.5653kmugerman@geomega.ca
Nancy ThompsonVorticom Public
Relations212-532-2208nancyt@vorticom.comTwitter: @Geomega_REE
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This news release contains statements that may
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commercialization of any of the technology referred to above, or if
any of them do so, what benefits the Corporation will derive.
Forward-looking statements and information are based on information
available at the time and/or management's good-faith belief with
respect to future events and are subject to known or unknown risks,
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which are beyond the Corporation’s control. These risks,
uncertainties and assumptions include, but are not limited to,
those described under “Risk Factors” in the Corporation’s annual
management’s discussion and analysis for the fiscal year ended May
31, 2020, which is available on SEDAR at www.sedar.com; they could
cause actual events or results to differ materially from those
projected in any forward-looking statements. The Corporation does
not intend, nor does the Corporation undertake any obligation, to
update or revise any forward-looking information or statements
contained in this news release to reflect subsequent information,
events or circumstances or otherwise, except if required by
applicable laws.
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