Geomega Resources Inc.: First Tranche Closing of $3,315,000 Brokered Private Placement
MONTREAL, QUEBEC, Mar 19, 2014 (Marketwired via COMTEX News Network) -- Further to its news release of February 28, 2014, Geomega Resources
Inc. ("GeoMegA" or the "Company") (TSX VENTURE: GMA) announces a
first tranche closing (the "First Tranche") of a brokered private
placement with Industrial Alliance Securities Inc. ("IAS") consisting
of 2,037,333 units (the "Units") at a subscription price of $0.60 per
Unit and 1,450,000 flow-through shares (each, a "Flow-Through
Share"), at a price of $0.70 per Flow-Through Share for gross
proceeds of $2,237,400 (the "Private Placement").
The Company will use the proceeds of the Private Placement for the
ongoing development of its separation process, exploration and
development at its Montviel property in Quebec and working capital
purposes.
Each Unit consists of one common share (a "Common Share") and
one-half of one share purchase warrant (each whole warrant, a
"Warrant"). Each whole Warrant entitles the holder thereof to acquire
one additional common share at a price of $0.90 per share for a
period of 18 months from March 19, 2014 (the "Closing Date").
IAS exercised its 15% over-allotment option in full. The Company
expects to close a final tranche of the Private Placement around
March 27, 2014. Including the first and final tranches, the total
gross proceeds of the Private Placement will be $3,315,000.
The Company has paid IAS a cash commission on the sale of the Units
and Flow-Through Shares of $145,431 and has issued 174,367
non-transferable agent's options to acquire such number of common
shares at a price of $0.60 exercisable for a period of eighteen (18)
months from the Closing Date.
An officer of the Company subscribed to 17,250 units of the Private
Placement (the "Insider's Participation"). The Insider's
Participation is exempt from the formal valuation and shareholder
approval requirements provided under Regulation 61-101 respecting
Protection of Minority Holders in Special Transactions ("Regulation
61-101"). The exemption is based on the fact that the market value of
the Insider's Participation or the consideration paid by such
insiders does not exceed 25% of the market value of the Company. The
Company did not file a material change report at least 21 days prior
to the completion of the Private Placement since the Insider's
Participation was not determined at that moment.
The Common Shares, Warrants and the Flow-Through Shares acquired by
the subscribers are subject to a hold period of four months plus one
day and may not be traded until July 20, 2014 except as permitted by
applicable securities legislation and the rules of TSX Venture
Exchange.
About GeoMegA (www.geomega.ca)
GeoMegA, which owns 100% of the Montviel rare earth elements/niobium
project located in Quebec, is a mineral exploration and development
company focused on the discovery and sustainable development of
economic deposits of metals, such as rare earth elements, niobium and
graphite, in Quebec. GeoMegA is committed to meeting Canadian mining
industry standards and distinguishing itself with its innovative
engineering, stakeholders engagement and its dedication to local
transformation benefits.
GeoMegA currently has 46,312,571 common shares issued and
outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our
intentions and plans. The forward-looking statements that are
contained in this news release are based on various assumptions and
estimates by the Company and involve a number of risks and
uncertainties. As a consequence, actual results may differ materially
from results forecast or suggested in these forward-looking
statements and readers should not place undue reliance on
forward-looking statements. We caution you that such forward-looking
statements involve known and unknown risks and uncertainties, as
discussed in the Company's filings with Canadian securities agencies.
Various factors may prevent or delay our plans, including but not
limited to, contractor availability and performance, weather, access,
mineral prices, success and failure of the exploration and
development carried out at various stages of the program, and general
business, economic, competitive, political and social conditions. The
Company expressly disclaims any obligation to update any forward-
looking statements, except as required by applicable securities laws.
Contacts: Simon Britt President and CEO GeoMegA (450) 465-0099 info@ressourcesgeomega.ca
SOURCE: Geomega Resources Inc.
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