GMA/Innord News Mr. Kiril Mugerman reports
GEOMEGA ACQUIRES 3.84% MINORITY INTEREST IN ITS SUBSIDIARY INNORD; NOW OWNS 100% OF ITS TECHNOLOGY SUBSIDIARY
Geomega Resources Inc. has closed an arm's-length share purchase transaction with the Societe de developpement de la Baie-James (SDBJ) and the Administration regionale Baie-James (ARBJ). The corporation has bought back the respective minority positions of the funds, totalling 3.84 per cent, 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 and 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.