GeoMegA Announces Up to $5 million Brokered Privat MONTREAL, QUEBEC, Mar 02, 2012 (MARKETWIRE via COMTEX News Network) -- Geomega Resources Inc. ("GeoMegA" or the "Company") (TSX VENTURE:
GMA) has entered into an agreement with Industrial Alliance
Securities Inc. to proceed, together with National Bank Financial
Inc. (collectively, the "Agents"), for a brokered private placement
on a "best efforts" basis for aggregate gross proceeds of up to $5
million (the "Offering").
The Offering consists of the issuance of a maximum 2,857,143 units
(the "Units") at a price of
.70 per Unit and 3,000,000 flow-through
shares at a price of $1.00 per flow-through share.
Each Unit will consist of one common share at a price of
.70 and
one-half of one common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant shall entitle its holder thereof to
subscribe for one additional common share at a price of $1.25 for a
period of eighteen (18) months following the closing of the Offering.
The net proceeds from the Offering will be used to fund the
development of Montviel through the Preliminary Economic Assessment,
exploration on the Company's graphite properties and for working
capital purposes.
At the closing of the Offering, the Agents will receive a cash
commission equal to 6.5% of the gross proceeds raised under the
Offering. In addition, the Agents shall receive non-transferable
broker warrants at an exercise price of
.70 per share exercisable
for a period of eighteen (18) months from the date of closing to
acquire such number of common shares of the Company that is equal to
4% of the aggregate number of units and flow-through shares issued
under the Offering.
The Offering is scheduled to close on or about March 23, 2012 and is
subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the TSX
Venture Exchange. All securities issued pursuant to the Offering will
be subject to a four month and one day hold period from the date of
closing of the Offering.
This press release is not an offer or a solicitation of an offer of
securities for sale in the United States. The securities have not
been and will not be registered under the U.S. Securities Act of
1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration.
About the Montviel Rare Earths/Niobium Project
The Montviel Rare Earths/Niobium Project is located approximately 45
km west of the Cree First Nation of Waswanipi and 100 km north of
Lebel-sur-Quevillion in the southern, developed, part of Quebec's
"Plan Nord" (49th parallel). The Plan Nord is an $80 billion
economic, social and environmental development plan of Northern
Quebec over a period of 25 years. Montviel's initial NI 43-101
compliant resource calculation at a base cut-off grade of 1% total
rare earths oxides (TREO), released on September 29, 2011, totalled
183.9 Mt averaging 1.45% TREO in the Indicated resources category and
66.7 Mt averaging 1.46% TREO in the Inferred resources category.
Montviel, the 4th largest TREO resource outside China, has the
potential for a significant near term role in the growing magnet
sector due to its proximity to infrastructure and available labour.
About GeoMegA
GeoMegA, which owns 100% of the Montviel Rare Earths/Niobium project,
is a Quebec mining exploration company focused on finding
economically viable deposits of Minor Metals in Quebec. GeoMegA is
committed to meeting Canadian mining industry standards and
distinguishing itself with its expertise, know-how and its support
and respect for local communities and the environment.
GeoMegA currently has 23,018,041 common shares outstanding.
Opinion on this NR anyone ?
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