Business
Geomega obtains a total loan of $ 3M from the Quebec government
MONTREAL, Sept. 30, 2020 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX:V.GMA) (OTC: GOMRF), a developer of clean technologies
About this update from Geomega Resources Inc.
[{"type":"text","content":" MONTREAL, Sept. 30, 2020 (GLOBE NEWSWIRE) -- 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 trans...