Geomega Announces Closing of Final Tranche of Financing for a Combined Total of $1.2M
July 10 2019 - 7:09AM
Geomega Resources Inc. (“
Geomega” or the
“
Corporation”) (TSX.V: GMA) announces the second
and final closing of a non-brokered private placement offering (the
“Offering”) in the amount of $317,755, consisting
of a total of 2,269,822 units (the “
Units”) at a
price of $0.14 per Unit. Together with the first tranche, the
Offering has resulted in aggregate proceeds of $1,232,010.
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 Offering is subject to receipt of regulatory approval,
including the final 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.
“Thanks to the strong support from our
shareholders, we were able to reach and surpass our original goal
for this financing and raised a total of $1.2M. We are now looking
forward to completing the final portion of our construction funding
and begin the next exciting phase in Geomega’s development. The
Corporation is finalizing its discussions with government and
institutional groups and will provide an update as soon as it is
available. The Corporation is also close to securing the ideal
location for the demonstration plant which is required to complete
the ongoing FEED study. The Corporation is expected to be in a
position to begin the construction process on schedule in the
coming months,” 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 executive management of
the Corporation, being Mathieu Bourdeau, the Chief Financial
Officer, have participated in this second closing of the Offering
in the aggregate amount of $5,005 (the “Insiders’
Participation”). In total, the Insiders participated for
$63,035 in the combined closings. The Insiders’ Participation
is considered a “related party transaction” under Regulation 61-101
respecting Protection of Minority Security Holders in Special
Transactions (Québec) (“Regulation 61-101”) and
the corresponding Policy 5.9 of the TSXV; however, the Insiders’
Participation is exempt from the formal valuation and minority
shareholder approval requirements provided under Regulation 61-101
in accordance with sections 5.5(a) and 5.7(1)(a) of said Regulation
61-101. The exemption is based on the fact that neither the market
value of the Insiders’ Participation nor the consideration paid
therefor exceeds 25% of the Corporation’s market capitalization.
The Corporation did not file a material change report at least 21
days prior to the first closing of the Offering since the Insiders’
Participation was not determined at that moment and the Corporation
wished to close the Offering on an expedited basis for sound
business reasons.
In connection with this Private Placement, the
Company has paid a cash finder’s fee in an amount of $14,672 and
issued 104,800 non-transferable finder’s options to acquire such
number of common shares at a price of $0.20, exercisable for a
period of twenty-four (24) months and subject to a hold period of
four months plus one day from the closing date.
About Geomega
(www.geomega.ca)Based in Montreal, Canada, Geomega
Resources has developed a proprietary, environmentally friendly
“ISR Technology” that recycles rare earth elements with focus on
the permanent magnet industry and produces four high demand, high
price, rare earth elements (HHREE – specifically Nd, Pr, Tb,
Dy).
The company is targeting 2020 for initial
production from its first commercial scale plant to supply HHREE’s
to North America and other parts of the world.
Geomega also owns the Montviel rare earth
carbonatite deposit and holds over 16.8M shares, representing
approximately 20% of the issued and outstanding shares of Kintavar
Exploration Inc. (KTR.V), a mineral exploration company that is
advancing the Mitchi stratiform copper project in Quebec.
For further information, please
contact:
Kiril Mugerman |
President and CEO |
Geomega |
450-641-5119 ext.5653 |
kmugerman@geomega.ca Dave BurwellVice President The Howard Group
Inc.Tel: 403-221-0915Toll Free:
1-888-221-0915dave@howardgroupinc.com |
Cautions Regarding Forward-Looking
Statements Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains statements that may
constitute “forward-looking information” or “forward-looking
statements” within the meaning of applicable Canadian securities
legislation. Forward-looking information and statements may
include, among others, statements regarding future plans, costs,
objectives or performance of the Corporation, or the assumptions
underlying any of the foregoing. In this news release, words such
as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”,
“anticipate”, “intend”, “plan”, “estimate” “target” and similar
words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether, or the times at
or by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur, including as regards the
commercialization of any of the technology referred to above, or if
any of them do so, what benefits the Corporation will derive.
Forward-looking statements and information are based on information
available at the time and/or management's good-faith belief with
respect to future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond the Corporation’s control. These risks,
uncertainties and assumptions include, but are not limited to,
those described under “Risk Factors” in the Corporation’s annual
management’s discussion and analysis for the fiscal year ended May
31, 2018, which is available on SEDAR at www.sedar.com; they could
cause actual events or results to differ materially from those
projected in any forward-looking statements. The Corporation does
not intend, nor does the Corporation undertake any obligation, to
update or revise any forward-looking information or statements
contained in this news release to reflect subsequent information,
events or circumstances or otherwise, except if required by
applicable laws.
Geomega Resources (TSXV:GMA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Geomega Resources (TSXV:GMA)
Historical Stock Chart
From Jul 2023 to Jul 2024