Business
GeoMegA and Innord Sign a Technology License Agreement
MONTREAL, QUEBEC--(Marketwired - April 6, 2016) - Geomega Resources Inc. ("GéoMégA" or the "Company") (TSX VENTURE:GMA) and Innord Inc. ("Innord") are pleased t
About this update from Geomega Resources Inc.
[{"type":"text","content":"MONTREAL, QUEBEC--(Marketwired - April 6, 2016) - Geomega Resources Inc. (\"GéoMégA\" or the \"Company\") (TSX VENTURE:GMA) and Innord Inc. (\"Innord\") are pleased to announce that the two companies signed a Technology License Agreement (\"TLA\") pursuant to which GéoMégA is granted a non-exclusive license to build and operate processing and separation facilities using the licensed technology (\"Licensed Technology\"). The Licensed Technology includes the patent applications for \"A system and method for separation and purification of dissolved rare earth/precious metals elements/compounds\" covered under patent application 2,893,793 (Canada) and 14/653,777 (U.S.A) and for \"A system and a method for metallurgical extraction of REE and Nb from Ferro-Carbonatite\" covered under patent application 62/180,663. The companies will continue to work jointly on developing the technologies, scaling up, implementing pilot plants and attaining industrial application. The TLA is not limited in time and is not restricted to any particular territory. Technology License Agreement - Royalty As part of the agreement, GéoMégA will pay Innord a 0.5% Net Value Royalty (\"NVR\") for all sales of products produced in a processing and separation facility utilizing the Licensed Technology. In the case where the processing and the separation facility are located in the James Bay Territory, the NVR will be of 0.25%. GéoMégA reserves the right to re-purchase half of the royalty (0.25% or 0.125% depending on the case) from Innord by paying a fixed fee of $250,000. The balance of the royalty could be re-purchased by paying an additional fee, to be negotiated based on market value and agreed upon by both parties at a later date. The Royalty can only be re-purchased once GéoMégA has reached commercial production and only if Innord's main revenue is no longer that from the GéoMégA royalty. \"Since the creation of Innord in March of 2015, investors wanted to understand the exact nature of cooperation between GéoMégA and Innord, rights to technology, fee structure if any, etc. This agreement addresses exactly these questions. With this critical agreement, we define the fundamental structure between the two companies which will be of utmost importance once testing of electrophoresis separation by Innord begins yielding detailed results such as estimates of opera...