Business
Geomega Resources Announces First Closing of Financing
European-based Rare Earth Supply Partner Provides a Majority of Funds; Funds to be used for the Construction of Rare Earths Demonstration Plant in Quebec, Canad
About this update from Geomega Resources Inc.
[{"type":"text","content":" European-based Rare Earth Supply Partner Provides a Majority of Funds; Funds to be used for the Construction of Rare Earths Demonstration Plant in Quebec, Canada. MONTREAL, July 03, 2019 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX.V: GMA) announces the first closing of a non-brokered private placement offering (the “Offering”) in the amount of $914,255, consisting of a total of 6,530,393 units (the “Units”) at a price of $0.14 per Unit. The Offering of Units consists of one common share (each a “Common Share”) and one-half of one share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one additional common share at a price of $0.20 per share for a period of twenty-four (24) months from the closing date. The Corporation is expected to close a final tranche of the Offering later in July 2019, subject to receipt of regulatory approvals, including the approval of the TSX Venture Exchange. The securities to be issued under the Offering will have a hold period of four months and one day from their issue. The majority of the financing has been secured with a European supply partner but due to a confidentiality agreement and the strategic nature of the first rare earths recycling demonstration plant in Canada, the investor has requested to remain anonymous. “Geomega would like to welcome our newest strategic partner as a shareholder in the Corporation. Our objective is very simple, it is to provide Europe and North America with a clean and sustainable supply of rare earths, ultimately eliminating the dependence on China. Our demonstration rare earth processing and recycling plant opens the door to production in Canada, which we believe will translate to future mining and downstream development. This is the first step in securing the required funding, a total of $2M, for the construction of the demonstration plant. Discussions for the remaining funds are still ongoing with various levels of the government and institutional groups and an update will be provided as soon as it is available,” commented Kiril Mugerman, President and CEO of Geomega. The Corporation will use the proceeds of the Offering for construction of the demonstration plant, working capital and operating expenses. Certain members of the board and executive management of the Corpora...