Matamec Receives a Second Payment of 1.1M CAD from Matamec Receives a Second Payment of 1.1M CAD from Toyotsu Rare Earth Canada
10:15 EDT Thursday, November 01, 2012
MONTREAL, QUÉBEC--(Marketwire - Nov. 1, 2012) -Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) is pleased to announce that the Company has received a second payment of 1,119,776 CAD from its Japanese partner Toyotsu Rare Earth Canada Inc. ("TRECan"), a subsidiary of Toyota-Tsusho Corp. ("TTC").
Matamec began discussions with TTC, a subsidiary of Toyota Motor Group, on January 25th, 2010, and both companies signed a Confidentiality Agreement on April 1st, 2010. After two years of negotiations, Matamec and TTC signed a Memorandum of Understanding ("MOU") on December 7th, 2011. Matamec received a payment of 1.5M CAD on February 2012 to bind the MOU with TTC.
With the signature of the Joint Venture Agreement ("JVA") by which TRECan can acquire 49% undivided interest in the Kipawa HREE Deposit, Matamec received 8.5M CAD for the first 25% undivided interest on July 18, 2012. To acquire the second 24% undivided interest, TRECan has to pay to Matamec a maximum amount of 7.5MCAD. The 1.1M CAD is the first of a number of successive payments in completion of the 7.5MCAD, but the second overall payment received from TRECan. Matamec will transfer the 24% undivided interest to TRECan when it will receive a cumulative maximum amount of 7.5M CAD.
With this payment, Matamec receives a cumulative amount of 9,619,776 CAD on a maximum 16M CAD for the feasibility study on the Kipawa HREE Deposit. The results of which are expected in the second quarter of 2013.
Andre Gauthier, president of Matamec, says that "the JVA has many tangibles, but also many valuable intangibles. For the tangibles, TRECan is a strategic partner and the JVA is only for the Kipawa HREE deposit. With the JVA signed July 2012 between TRECan (49%) and Matamec (51%), TRECan provided $16MCAD for a NI 43-101 independent bankable feasibility study. Matamec is operator of the JV. TRECan will sign an off-take agreement to buy 100% of a mixed rare earths concentrate and TRECan will arrange with Matamec the financing through to production".
The president adds that "for the intangibles, the JVA includes mutual collaboration to accelerate the development of the Kipawa HREE Deposit and technical assistance from the Worldwide Toyota Network (critical to fast track the project). This agreement secures a heavy REE supply for the production and marketing of hybrid vehicles".
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