MONTREAL, QUEBEC, Jun 18, 2012 (MARKETWIRE via COMTEX News Network) -- Geomega Resources Inc. ("GeoMegA" or the "Company") (TSX VENTURE:
GMA) announces the signing of an Option Agreement between certain
Vendors and GeoMegA whereby the Vendors granted GeoMegA the option to
earn a 100 % undivided interest in 15 mining claims completing the
Oriana Tungsten project.
GeoMegA shall have the option to acquire 100% by making aggregate
payments of $150,000 and issuing shares with an aggregate value of
$150,000 (based on the ten day volume weighted average price as of
issuance, minimum of
.35 per common share) on or before the Third
anniversary date to the Vendors as follows:
-- $25,000 in cash on signing and 40,000 common shares within 5 days of TSX Venture Exchange (TSXV) approval; -- $25,000 in cash and $25,000 in common shares on or before the First anniversary date of TSXV approval; -- $50,000 in cash and $50,000 in common shares on or before the Second anniversary date of TSXV approval; -- $50,000 in cash and $50,000 in common shares on or before the Third anniversary date of TSXV approval.
The Vendors shall be entitled to a 2% royalty on net smelter return
from production from the 15 claims. GeoMegA may at any time purchase
50% of the royalty from the Vendors for $1,000,000.
All securities issued under the Option Agreement are subject to a
four (4) month hold period. The Option Agreement remains subject to
acceptance by the TSXV.
"A short exploration program (outcrops sampling and 363 m of diamond
drill) performed last March and April on the Oriana project revealed
potential for tungsten (scheelite minerals) and gold (smoky quartz
veins) within a favourable geological setting. Complete assays are
expected in July. Oriana is 15 km west of the town of Chapais, road
accessible and within 1 km from highway 113N, rail road and an
electric power line. The technical team will work to reveal the full
potential over the next two years." comments Simon Britt, CEO of
GeoMegA.
Change of Auditors
The Board of Directors has appointed PricewaterhouseCoopers LLP,
Chartered Accountants, as GeoMegA's auditors. The appointment of
PricewaterhouseCoopers LLP follows the resignation of Raymond Chabot
Grant Thornton LLP (RCGT), Chartered Accountants, as the Company's
auditors, at the request of the Board. RCGT have served as the
Company's auditors since its IPO in the summer of 2010.
Option termination
GeoMegA has notified NioGold Mining Corporation and Services Miniers
Mecanex of its decision to terminate its participation in the Pump
Lake project and Emilie project respectively, in accordance with the
option agreements.
NI 43-101 Disclosure
Alain Cayer, Geologist, MSc., VP Exploration, is the Qualified Person
who supervised and approved the preparation of the technical
information in this news release.
About GeoMegA
GeoMegA, which owns 100% of the Montviel Rare Earths/Niobium project,
is a Quebec mineral 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.
29,274,113 common shares of GeoMegA are currently issued and
outstanding.
Simon Britt
Chief Executive Officer