MONTREAL, QUEBEC--(Marketwire - Aug. 28, 2012) - Geomega Resources Inc. ("GeoMegA" or the "Company") (GMA.V) announces the signing of a non-binding letter of intent ("LOI") with Innovation Metals Corp. ("IMC") for the processing of a quantity of neodymium-rich concentrate in Becancour, Quebec, derived from the Company's Montviel rare-earth element (REE) project.
IMC is planning the development and construction of an independent REE separation facility (the "Facility"), to be located within the Becancour Waterfront Industrial Park in Quebec, Canada. The Facility will be capable of processing mixed REE concentrates derived from multiple mineral sources, via a centralized plant design. The focus will be on REE concentrates rich in critical REEs such as neodymium, europium, terbium, dysprosium and yttrium.
"We anticipate that neodymium will account for approximately 60% of the REE distribution in the Montviel concentrate." comments Simon Britt, CEO of GeoMegA. "Processing Montviel's concentrate into separated REEs generates a significant increase in value whereby it maximises revenues from production and multiplies the pool of end-users. It is a privilege to be invited as a future producer in the IMC Consortium."
"We are very pleased to welcome GeoMegA into the newly formed IMC Consortium," comments Gareth Hatch, President of IMC. "Neodymium is vital for the production of high-performance permanent-magnet materials, used in a wide variety of electrical machines. Such machines are already in increasing demand with the growth of sustainable-energy initiatives such as hybrid and electric vehicles and direct-drive wind turbines. End users in the IMC Consortium will appreciate having access to secure sources of neodymium and other critical REEs."
Mr. Britt adds, "IMC's business model, based on a low-cost tolling fee for the processing of mixed REE concentrates into separated REEs, is very valuable for producers since it realizes the full value and pricing for the REEs, without the capital expenditure and know how required to build a REE separation facility. The added revenues will favour the economics in our preliminary economic assessment ("PEA")."
An update on the ongoing PEA with G Mining Services Inc. for the Montviel project is scheduled for next month.
About the Montviel Rare Earths/Niobium Project
The Montviel Rare Earths/Niobium Project is located approximately 45 km west of the Cree First Nation of Waswanipi and 100 km north of Lebel-sur-Quevillon in the southern, developed, part of Quebec's "Plan Nord" (North of 49th parallel). The Plan Nord is an $80 billion economic, social and environmental development plan of Northern Quebec over a period of 25 years. Montviel's initial NI 43-101 compliant resource calculation at a base cut-off grade of 1% TREO, released on September 29, 2011, totalled 183.9 Mt averaging 1.45% TREO in the Indicated resources category and 66.7 Mt averaging 1.46% TREO in the Inferred resources category. Montviel, one of the largest TREO resources outside China, has the potential for a significant near-term role in the growing permanent-magnet sector due to its proximity to infrastructure and available labour. The PEA study, ongoing with G Mining Services Inc., will focus on the Rare Earths/Niobium enrichment zone of the deposit.
NI 43-101 Disclosure
Gary H.K. Pearse, P.Eng., MSc., metallurgical consultant and Alain Cayer, Geo., MSc., VP-Exploration, are the Qualified Persons who approve the technical information presented in this news release.
About GeoMegA (ressourcesgeomega.ca)
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.
About IMC (innovationmetals.com)
IMC is a private Canadian-based company founded in 2011. IMC's goal is to alleviate the bottleneck that has formed in the rare-earth supply chain, through the creation of the world's first independent, centralized rare-earth separation facilities, to be located in Becancour, Quebec. The company intends to bridge the gap between producers and end users via the creation of a Consortium, through which it will provide low-cost material tolling programs to producers, and assuring security of supply for end users and sovereign governments. IMC is also developing innovative trading platforms, to further increase the opportunities within the rare-earth sector for traders.
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 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.