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Geomega Resources Closes $2.5M Non-Brokered Private Placement
Rare Earths Recycling Demonstration Plant in Quebec, Canada Fully Funded to Production MONTREAL, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geom
About this update from Geomega Resources Inc.
[{"type":"text","content":" Rare Earths Recycling Demonstration Plant in Quebec, Canada Fully Funded to Production MONTREAL, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX.V: GMA) is pleased to announce the closing of an oversubscribed non-brokered private placement (the “Offering”) of 14,709,093 units (the “Units”), at a price of $0.17 per Unit, for aggregate gross proceeds in the amount of $2,500,545.81. The Offering of Units consists of one common share (each a “Share”) and one share purchase warrant (each a “Warrant”). Each Warrant entitles the holder thereof to acquire one additional Share at a price of $0.22 per Share until the date that is 24 months from their issue and thereafter at a price of $0.25 until the date that is 36 months from their issue. The securities issued under the Offering have a hold period of four months and one day expiring on March 10, 2021. The Offering is subject to final acceptance of the TSX Venture Exchange. “We are very pleased with the closing of this financing. The majority of the Offering was subscribed by new investors who are seeking both near-term cash flow opportunities and Environmental, Social and Governance (“ESG”) investments in the critical and strategic minerals (CSM) space. Geomega’s activities are also aligned with the Government of Quebec Plan for the Development of the Critical and Strategic Minerals with a budget of $90M that was just recently unveiled on October 29, 2020. This government-sponsored financial initiative is aimed at creating wealth while continuing the green energy transition, essential for the fight against climate change. The government’s vision is to make Quebec a leader in CSM production, transformation, reclamation and recycling. The circular economy concept, of which Geomega’s proprietary rare earth magnet recycling project is an integral part of, is at the core of this plan as stated by Benoit Charette, Minister of the Environment and the Fight Against Climate Change during the announcement.” commented Kiril Mugerman, President and CEO of Geomega. You can read more about the Plan for the Development of CSM in Quebec here. The Corporation will use the proceeds of the Offering for the construction of the rare earths recycling demonstration plant, working capital and operating expenses. The proceeds will complement the debt funding of $3...