MONTREAL, Dec. 16, 2019 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX.V: GMA) is pleased to announce the closing of an arm’s length share purchase transaction with the Société de développement de la Baie-James (“SDBJ”) and the Administration régionale Baie-James (“ARBJ”, together with SDBJ, the “Funds”). The Corporation has bought back the respective minority positions (the “Shares”) of the Funds, totaling 3.84% in Innord Inc., the technology subsidiary of Geomega. The aggregate consideration for the acquisition of the Shares is $371,208, payable by the issuance of a total of 2,516,664 shares of Geomega. The issue price of $0.1475 was based on the weighted average price of the common shares of Geomega, calculated on the volume of common shares traded during the period of 30 days preceding the closing date of December 15, 2019.
In June 2016, the Funds had invested a combined $250,000 in Innord in exchange for the 3.84% interest. With this transaction, the Corporation now owns 100% of the technology subsidiary and in doing so improved its balance sheet. The focus is now on delivering a revenue generating rare earths magnet recycling demonstration plant.
“With Geomega moving towards production, the two Funds that greatly supported our vision to create a clean tech rare earths facility, have now fulfilled their mandate in the creation of our R&D subsidiary and moving the technology forward to where we are at today. We are very thankful to the Funds for having the confidence, vision and support the Corporation needed in the early stages of our research initiatives beginning in 2016. Today, we are starting to see the first fruits of this initiative with Geomega moving towards construction of the demonstration plant and becoming the first rare earths recycling plant in North America and Europe. Moving forward, our vision is to use our ISR technology to one day process mining rare earths concentrates from our own Montviel deposit and ultimately other mines wherever they may be located.” commented Kiril Mugerman, President & CEO of Geomega.
The transaction remains subject to the final approval of the TSX Venture Exchange. The Shares issued as consideration pursuant to the transaction will be subject to a statutory hold period ending on April 16, 2020.
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 Corporation is targeting 2020 for initial production from its demonstration 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.
About Innord Inc.
Innord is a private wholly owned subsidiary of Geomega. The goal of Innord is to develop and optimize the proprietary ISR Technology for extraction and separation of rare earth elements. Innord focuses on scaling up the technology through processing rare earth enriched secondary sources (recycling of end of life and manufacturing waste) and then to apply the technology to primary mining feeds.
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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, 2019, 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.