- Geomega Resources (GMA) has raised more than C$2.5 million to fund the construction of a rare earths recycling demonstration plant
- The company issued just over 14.7 million units at a price of $0.17 each, comprised of one common share and one share purchase warrant
- Each warrant will entitle the holder to acquire an additional share at a price of $0.22 for a period of 24 months
- The proceeds raised complement the recent debt funding of $3 million received from Investissement Quebec in September this year
- Geomega Resources is currently down 2.63 per cent to $0.18 per share
Geomega Resources (GMA) has raised more than C$2.5 million to fund the construction of a rare earths recycling demonstration plant.
Under the terms of the offering, the Montreal-based developer of extraction and separation technologies issued just over 14.7 million units at a price of $0.17 each.
These units are comprised of one common share in Geomega and one common share purchase warrant, exercisable at a price of $0.22 per share for a period of 24 months.
In addition to the plant construction – which is expected to reach completion in the first half of next year – the proceeds raised will also go towards general corporate and working capital purposes, and complement a recent debt funding of $3 million received from Investissement Quebec in September.
“We are very pleased with the closing of this financing,” said Kiril Mugerman, President and CEO of Geomega Resources.
“The majority of the offering was subscribed by new investors who are seeking both near-term cash flow opportunities and Environmental, Social and Governance investments in the critical and strategic minerals (CSM) space,” he added.
Kiril also noted that alignment of Geomega’s operations with the Government of Quebec’s new plan for the development of critical and strategic minerals, which was unveiled on October 29, 2020, with a budget of $90 million.
The initiative is aimed at creating wealth while progressing a broader transition to green energy, with an overriding vision to establish Quebec as a leader in CSM production, transformation, reclamation and recycling – integral to which is Geomega’s proprietary rare earth magnet recycling project.
Geomega Resources is currently down 2.63 per cent to $0.18 per share at 11:29am EST.