MONTREAL, QUEBEC — (Marketwire) — 03/16/12 — Geomega Resources Inc. („GeoMegA“ or the „Corporation“) (TSX VENTURE: GMA) announces the grant of a $1,500,000 loan by SIDEX, Limited Partnership („SIDEX“).
The loan is secured by an hypothec on the universality of GeoMegA-s receivable from Revenu Quebec tax credits for the fiscal years ended in 2011 and 2012 from Revenu Quebec and related to mineral exploration. The loan must be repaid on the earlier of December 31, 2013 or upon the receipt of said tax credits. The loan bears interest at an annual rate of 8%. The proceeds of the loan will be allocated to general and administrative purposes.
In connection with the loan, GeoMegA issued 400,000 non-transferable common share purchase warrants entitling SIDEX to subscribe 400,000 common shares of GeoMegA (each a „Common Share“) at a price of $1.25 per share for a period of 12 months.
Each Common Share will be subject to the required hold period of four months plus on day from the closing in accordance with applicable securities legislation.
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.
23,039,112 common shares of GeoMegA are currently issued and outstanding.
About SIDEX Limited Partnership
SIDEX was established by the Government of Quebec and the Solidarity Fund QFL. The mission of SIDEX is to invest in companies engaged in mineral exploration in Quebec in order to diversify Quebec-s mineral base, encourage new exploration models, stimulate investment for new commodities in existing districts and open new territories with high potential for discovery.
/s/ „Simon Britt“
Simon Britt
Chief Executive Officer
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 Corporation 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 Corporation-s filings with Canadian Securities Administrators. 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 Corporation expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.
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.
Contacts: For Investor: Simon Britt GeoMegA 450 465-0099
Only registered users can comment.
