Business
Geomega Resources secures project debt financing of $1.72M from the Quebec Government
MONTREAL, Feb. 07, 2020 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX.V: GMA) and its wholly owned subsidiary Innord Inc. (“I
About this update from Geomega Resources Inc.
[{"type":"text","content":" MONTREAL, Feb. 07, 2020 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX.V: GMA) and its wholly owned subsidiary Innord Inc. (“Innord”) are very pleased to announce that they have secured the required project debt financing to build the rare earth magnet recycling demonstration plant in St-Bruno-de-Montarville, Quebec. Project financing will be provided by Investissement Quebec (“IQ”), who will be acting as agent of the Quebec Government, through the ESSOR program of the Ministry of Economy and Innovation of Quebec (Ministère de l'Économie et de l'Innovation du Québec - “MEI”). The debt financing is for a total of $1,720,000, based on a project evaluated at $3.2M including capital costs and working capital, and is repayable over 72 months starting from 24 months following the first withdrawal of the funds. The proposed use of funds will be towards the purchase of equipment, 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 raised pursuant to the equity financing completed by the Corporation in 2019 (see press releases of July 3 and July 10, 2019) and other non-reimbursable grants that the Corporation has applied for and, in certain cases, obtained (see Q2 MD&A report of the Corporation for more details). \"Geomega’s project is part of Quebec’s vision for green economy, i.e. to pursue our environmental objectives while stimulating economic growth. Rare earths are used in new technologies, such as smartphones and electric motors, and the demand for these metals is constantly increasing. Furthermore, rare earths production within the principles of circular economy is a major asset for Quebec and will help to further strengthen our position as a leader in the electrification of transportation”, commented Pierre Fitzgibbon, Minister of the Economy and Innovation and the Minister responsible for the Lanaudière region. “It is with great pride that a company from the riding of Montarville is carrying out such a forward-thinking and promising circular economy driven project. Geomega is poised to become the North American benchmark in rare earth recycling, an avenue to put forth through these times of increasing technological growth and environmental aware...