MONTREAL, Sep 30, 2020 (GLOBE NEWSWIRE) – Geomega Resources Inc. (“Geomega“or the”company“) (TSX: V.GMA) (OTC: GOMRF), a developer of clean technologies for the extraction, refining and recycling of rare earths, is pleased to announce that it has secured additional debt financing of $ 1,326,000, which will be added to the funds required to build the rare earth magnet recycling demonstration plant in Saint-Bruno-de-Montarville, Quebec. Funding for the project will be provided by Investissement Québec (“IQ”), which will act as agent on behalf of the Government of Quebec to ensure the funding of the project.
The amount is in addition to the amount of the first tranche of $ 1,720,000 that was announced on February 7, 2020. The total debt financing amount will now total $ 3,046,000 and will have the same favorable terms as the first tranche, including the fact that the debt is not interest-bearing. The increased amount of debt financing is based on an updated project valued at $ 4,800,000, including capital costs and working capital (which was previously estimated at $ 3,200,000). The increase in costs results from the Company’s internal assessments based on completed engineering work and adjustments for delays, associated with restrictions imposed by the COVID pandemic and engineering work, and higher costs of engineering and construction.
The proposed use of funds will be for the purchase of equipment, as well as for the engineering and construction of the demonstration plant. This non-dilutive debt financing for the Company is not accompanied by any warrants or finder’s fees. This debt financing will complement funds currently held by the Company and other non-repayable grants that Géoméga has requested and, in some cases, obtained (see the Company’s 2020 Annual MD&A for more details).
“We are very grateful for the continued support of the Government of Quebec, which has once again demonstrated its commitment and leadership to local innovative technological initiatives with this follow-up funding that builds on their first investment in our project plus early this year. The Government of Quebec is working hard to help establish clean and innovative production of critical metals that will both create jobs and produce the materials needed for the industries of tomorrow. Its commitment to the transformation and recycling of rare earth elements will help attract other downstream industries and establish a clean and sustainable rare earth refining industry in Quebec. With this portion of funding now complete, we look forward to the completion of the pilot tests we started in August 2020, and then proceed to finalize engineering and start construction. Commented Kiril Mugerman, President and CEO of Geomega.
“This global investment by our government aims to encourage the development of a green economy. This is a major aspect of the Geomega project. Also, the recycling of rare earth elements is an avenue for the valuation and development of critical and strategic minerals in Quebec. With technologies and the energy transition, demand is strong for these minerals. Jonatan Julien, Minister of Energy and Natural Resources, Minister responsible for the Côte-Nord region.
The Company will continue to inform shareholders as construction of the demonstration plant progresses.
About Géoméga (www.geomega.ca)
Based in Boucherville and St-Bruno, Canada, Geomega Resources has developed an exclusive and environmentally friendly “ISR technology” that recycles rare earth elements with a focus on the permanent magnet industry and produces four high demand and high price rare earth elements (HHREE – specifically Nd, Pr, Tb, Dy).
The Company is targeting 2020 for initial production from its demonstration plant to supply HHREEs to North America and other parts of the world.
Geomega also owns the Montviel rare earth carbonatite deposit and owns over 16.8 million shares, representing approximately 19% of the issued and outstanding shares of Kintavar Exploration Inc. (KTR.V), a company of mining exploration that advances the Mitchi stratiform copper project in Quebec.
About Innord Inc.
Innord is a private, wholly owned subsidiary of Geomega. Innord’s goal is to develop and optimize proprietary ISR technology for the extraction and separation of rare earth elements. Innord is focused on scaling up the technology by processing secondary sources enriched in rare earths (recycling end-of-life and manufacturing waste), and then applying the technology to major mining feedstocks.
On Investment Quebec
Investissement Québec’s mission is to actively participate in the economic development of Quebec by stimulating innovation in businesses, entrepreneurship and the growth of investments and exports in all regions of Quebec. The Company offers services to businesses and entrepreneurs, such as technological support, as well as financial solutions and suitable investments. Through its Investissement Québec International division, the Company is responsible for supporting exporting companies and ensuring the prospecting of foreign investments.
For more information, please contact:
President and CEO
450-641-5119 ext. 5653
Vorticom Public Relations
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