- Geomega Resources (GMA) has obtained a C$1.3 million loan to fund construction of a rare earth magnet recycling demonstration plant
- The loan is the second received by the company, after a previous loan of $1.72 million was provided in February 2020
- The $3.046 million in project financing came from Investissement Quebec, on behalf of the Quebec Government
- The latest tranche of funds will go towards the purchase of equipment, and engineering and construction of the demonstration plant
- Geomega Resources (GMA) is up 5.56 per cent and is currently trading at 19 cents per share
Geomega Resources (GMA) has obtained a C$1.3 million loan to fund construction of a rare earth magnet recycling demonstration plant.
The company is working to build the demonstration plant in Saint-Bruno-Montarville, Quebec.
This is the second loan which Geomega Resources has received for this initiative, after receiving $1.72 million in early February, 2020. In total, the company has now received $3.046 million in project financing from Investissement Quebec, on behalf of the Quebec Government.
Geomega’s amount of debt financing was increased after the project evaluation was updated to $4.8 million. It was initially estimated at $3.2 million, but this was impacted by delay adjustments, internal evaluations, higher engineering and construction costs, and COVID-19 restrictions.
Just like the first tranche, this debt amount will not bear any interest. The latest tranche of funds will go towards the engineering and construction of the demonstration plant, along with equipment purchases.
Geomega’s President and CEO, Kiril Mugerman, expressed the company’s gratitude for the ongoing financial support from the Government of Quebec.
“The Quebec Government is working hard to help establish clean, and innovative production of the critical metals that will simultaneously create jobs and produce materials needed for the industries of tomorrow.
“Its commitment to transformation and recycling of rare earth elements will help attract further downstream industries and establish a clean and sustainable rare earths refining industry in Quebec.
“With this funding portion now complete, we are looking forward to the completion of pilot testing which we began in August 2020 and then proceed to finalise engineering and begin construction,” he said.
Geomega Resources (GMA) is up 5.56 per cent and is trading for 19 cents per share at 10:48am EDT.