MONTREAL, Oct. 20, 2011 /CNW Telbec/ - Geomega Resources Inc. (GéoMégA) (TSXV: GMA) is pleased to announce the Company has signed a Pre-Development Agreement ("PDA") for its Montviel Rare Earths Project with the Grand Council of the Crees (Eeyou Istchee) / Cree Regional Authority and the Cree First Nation of Waswanipi.
The PDA has been developed on the principle of mutual respect between the parties, and the interests of all stakeholders in seeing the establishment of a successful mining venture at Montviel. It provides for business and employment opportunities for the Crees during the period of pre-development activities leading up to a potential production decision at the project, the completion of a comprehensive Business and Employment Capacity Study to assess the full potential for Cree business and employment opportunities from an eventual Montviel Rare Earths Mine, and the creation of a joint communication strategy. In addition, the PDA provides for Cree assistance in the preparation of an Environmental and Social Impact Assessment for Montviel, and any other relevant environmental and social assessment studies. The PDA builds upon good faith dialogue between the parties, and contemplates the completion of a subsequent Social and Economic Participation Agreement.
"This agreement is the result of a collaboration that began in October 2010, a week after our IPO, while preparing for the commencement of Phase 1 drilling at Montviel. This significant milestone, achieved early in the development of Montviel, illustrates our dedication to Social and Environmental respect. Thanks to the collaboration of the Crees of Eeyou Istchee, in particular the W11B Tallyman and his family and the Cree First Nation of Waswanipi, Montviel promises to be one of the fastest developing rare earth project globally. In addition to providing for meaningful benefits to all stakeholders, this agreement confirms the support of involved parties in the pursuit of activities and studies necessary to enhance the value of our promising Montviel project." stated Simon Britt, CEO of GéoMégA.
Chief Paul Gull from the Cree First Nation of Waswanipi stated: "Our community and the Council of the Cree First Nation of Waswanipi are eager to collaborate with the mineral exploration and mining industry. We recognize that this industry has a corporate social responsibility to follow in the footsteps of GéoMégA. The signing of this agreement ensures that there will be meaningful participation by our local members without sacrificing sustainability. It is an important step for all parties."
Pursuant to the PDA, GéoMégA will issue 150,000 common shares to the Waswanipi Development Corporation. The issued securities are subject to regulatory approval and a four (4) month hold period.
Major discovery for Québec - 3rd largest TREO deposit outside China (NI 43-101 or equivalent)
The initial NI 43-101 compliant resource calculation, released on
September 29, 2011, totalled 183.9 million tons Indicated averaging
1.45% total rare earth oxides (TREO) in addition to 66.7 million tons
Inferred averaging 1.46% TREO. Montviel has the potential to play a
significant near term role in the clean technologies of the 21st century due to its proximity to infrastructure and available labour.
Rare earth elements are key components of the clean energy technologies and other high-technology applications. Major applications include hybrid/electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent lights and numerous metal alloys.
About GéoMégA
GéoMégA, which owns 100% of the Montviel property, is a young Québec
mining exploration company focused on finding economically viable
deposits of elements needed by Clean Technologies. GéoMégA is committed
to meeting stringent mining industry standards and distinguishing
itself with its expertise, know-how and its support and respect for
local communities and the environment.
GéoMégA currently has 22,205,899 common shares outstanding and is well funded.
The TSX Venture Exchange and its regulatory service provider (as defined in the TSX-V Rules) cannot be held responsible for the accuracy or veracity of this release.
On behalf of the Board of Directors of
GéoMégA
/s/ "Simon Britt"
Simon Britt
President and Chief Executive Officer
Forward-Looking Statements. This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.