Mr. Simon Britt reports
GEOMEGA CLOSES $5 MILLION PRIVATE PLACEMENT
Geomega Resources Inc. has closed the $5-million private placement previously announced by the company on June 30, 2011.
Theoffering was completed by a syndicate of agents led by Mackie ResearchCapital Corp., and included Global Hunter Securities LLC, JacobSecurities Inc. and Versant Partners Inc.
Pursuant to theoffering, 2,127,659 units at a price of $2.35 were issued for totalgross proceeds of $4,999,999. Each unit consists of one common share andone common-share purchase warrant. Each warrant is exercisable at anytime for one common share at a price of $2.85 until July 8, 2013.
Inconnection with the offering, the company paid the agents a fee of$328,781 and issued to the agents 134,750 compensation options, eachcompensation option entitling the holder thereof to acquire units at aprice of $2.35 per unit until July 8, 2013.
All securities pursuant to the offering are subject to a four-month-and-one-day hold period.
Proceedsof the offering will be used to finance the phase two drill program,initial resource calculation in compliance with National Instrument43-101 reporting standards, metallurgical tests and preliminary economicassessment of the company's Montviel rare-earth-element project inQuebec.