MONTREAL, QUEBEC--(Marketwire - June 18, 2012) - Geomega Resources Inc. ("GeoMegA" or the "Company") (GMA.V) announces the signing of an Option Agreement between certain Vendors and GeoMegA whereby the Vendors granted GeoMegA the option to earn a 100 % undivided interest in 15 mining claims completing the Oriana Tungsten project.
GeoMegA shall have the option to acquire 100% by making aggregate payments of $150,000 and issuing shares with an aggregate value of $150,000 (based on the ten day volume weighted average price as of issuance, minimum of $0.35 per common share) on or before the Third anniversary date to the Vendors as follows:
-- $25,000 in cash on signing and 40,000 common shares within 5 days of TSX
Venture Exchange (TSXV) approval;
-- $25,000 in cash and $25,000 in common shares on or before the First
anniversary date of TSXV approval;
-- $50,000 in cash and $50,000 in common shares on or before the Second
anniversary date of TSXV approval;
-- $50,000 in cash and $50,000 in common shares on or before the Third
anniversary date of TSXV approval.
The Vendors shall be entitled to a 2% royalty on net smelter return from production from the 15 claims. GeoMegA may at any time purchase 50% of the royalty from the Vendors for $1,000,000.
All securities issued under the Option Agreement are subject to a four (4) month hold period. The Option Agreement remains subject to acceptance by the TSXV.
"A short exploration program (outcrops sampling and 363 m of diamond drill) performed last March and April on the Oriana project revealed potential for tungsten (scheelite minerals) and gold (smoky quartz veins) within a favourable geological setting. Complete assays are expected in July. Oriana is 15 km west of the town of Chapais, road accessible and within 1 km from highway 113N, rail road and an electric power line. The technical team will work to reveal the full potential over the next two years." comments Simon Britt, CEO of GeoMegA.
Change of Auditors
The Board of Directors has appointed PricewaterhouseCoopers LLP, Chartered Accountants, as GeoMegA's auditors. The appointment of PricewaterhouseCoopers LLP follows the resignation of Raymond Chabot Grant Thornton LLP (RCGT), Chartered Accountants, as the Company's auditors, at the request of the Board. RCGT have served as the Company's auditors since its IPO in the summer of 2010.
GeoMegA has notified NioGold Mining Corporation and Services Miniers Mecanex of its decision to terminate its participation in the Pump Lake project and Emilie project respectively, in accordance with the option agreements.
NI 43-101 Disclosure
Alain Cayer, Geologist, MSc., VP Exploration, is the Qualified Person who supervised and approved the preparation of the technical information in this news release.
GeoMegA, which owns 100% of the Montviel Rare Earths/Niobium project, is a Quebec mineral 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.
29,274,113 common shares of GeoMegA are currently issued and outstanding.
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 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.
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.