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Geomega secures project debt financing of $1.72 million from the Quebec Government

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The debt financing is for a total of $1,720,000, based on a project evaluated at $3.2 million including capital costs and working capital, and is repayable over 72 months starting from 24 months following the first withdrawal of the funds.

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Additional Information:

Company: Geomega Resources Inc.
Website: http://www.geomega.ca
Stock Symbol: TSXV: GMA
Date Published: Feb 7, 2020
Transcript: Available

Video Transcript:

I’m Erica James for Investmentpitch Media

Geomega Resources Inc. and its wholly owned subsidiary Innord Inc., have secured the debt financing required to build the rare earth magnet recycling demonstration plant in St-Bruno-de-Montarville, Quebec.

Quebec-based Geomega Resources has developed a proprietary, environmentally friendly “ISR Technology” that recycles rare earth elements, using magnet residue and recycled magnets as main source of feed.

The company intents to process feed from magnet manufacturers, alloy makers and recyclers across Europe and US at its Canadian facility.

The company uses organic, solvent-free proprietary technology to isolate and purify four high demand, high-priced rare earth elements which represent an estimated 30% of annual global demand for rare earth elements and 80% of the total market value.

Project financing will be provided by Investissement Quebec, who will be acting as agent of the Quebec Government, through the ESSOR program of the Ministry of Economy and Innovation of Quebec.

The debt financing is for a total of $1,720,000, based on a project evaluated at $3.2 million including capital costs and working capital, and is repayable over 72 months starting from 24 months following the first withdrawal of the funds.

The proposed use of funds will be towards the purchase of equipment, engineering and construction of the demonstration plant.

Pierre Fitzgibbon, Minister of the Economy and Innovation, stated: “Geomega’s project is part of Quebec’s vision for green economy, i.e. to pursue our environmental objectives while stimulating economic growth. Rare earths are used in new technologies, such as smartphones and electric motors, and the demand for these metals is constantly increasing. Furthermore, rare earths production within the principles of circular economy is a major asset for Quebec and will help to further strengthen our position as a leader in the electrification of transportation.”

Nathalie Roy, Member of the National Assembly of Quebec, added: “It is with great pride that a company from the riding of Montarville is carrying out such a forward-thinking and promising circular economy driven project. Geomega is poised to become the North American benchmark in rare earth recycling, an avenue to put forth through these times of increasing technological growth and environmental awareness. This dynamic company has chosen to develop itself in an area of expertise which will contribute to the economic growth of Quebec, an area of expertise for which we have all the necessary know-how to succeed.”

Kiril Mugerman, President & CEO, stated: “We are very grateful for the support we received from the Government of Québec. The Government of Quebec has a very clear objective of establishing Quebec as a leader in critical materials and to be ready for the global electrification of tomorrow. Quebec is in a very enviable situation with its clean and low-cost energy, a key advantage in establishing rare earths processing and recycling in the province. The cash flow generated from the commissioning of the plant and the validation of our technology will allow us to move towards processing other rare earth feed supplies, including mining concentrates from Montviel and other mining projects. Geomega’s gradual scale up through industrial residues, i.e. permanent magnets, will fill in the gap in the rare earths circular economy by establishing the first recycling facility of its kind outside of Asia, while establishing Canada as one of the few rare earths producing countries.”

Geomega also owns the Montviel rare earth carbonatite deposit and holds over 16.8 million shares, representing approximately 19% of the shares of Kintavar Exploration Inc., a mineral exploration company that is advancing the Mitchi stratiform copper project in Quebec.

The shares are trading at $0.19.

For more information, please visit the company’s website www.geomega.ca, contact Kiril Mugerman, President & CEO, at 450-641-5119 ext 5653 or email KMugerman@geomega.ca.

I’m Erica James for Investmentpitch Media