GeoMegA Closes the Second Tranche and Completes its Brokered Private Placement
For immediate distribution
MONTREAL, April 10, 2012 – Geomega Resources Inc. (TSX.V: GMA) (“GéoMégA” or the “Company”) is pleased to announce that it has closed the second and final tranche (the « Second Tranche« ) of its brokered private placement with Industrial Alliance Securities Inc. and National Bank Financial Inc. (the « Agents« ) consisting of 435,161 units (the « Units« ) at a subscription price of $0.55 per Unit and 322,000 flow-through shares (the « Flow-Through Shares« ) at a subscription price of $0.75 per Flow-Through Share for an additional aggregate gross proceeds of $480,839. The first tranche previously closed on March 30, 2012 together with this Second Tranche of the brokered private placement has provided aggregate gross proceeds of $3,500,000
Each Unit consists of one common share (a « Common Share« ) and one-half of a share purchase warrant (each whole warrant, a « Warrant« ). Each whole Warrant entitles the holder thereof to acquire one additional common share at a price of $1.00 per share (a « Warrant Share« ) at any time until 5:00 p.m. (Montréal time) on or before September 30, 2013.
The Common Shares and the Warrants acquired by the subscribers in this Second Tranche are subject to a hold period of four months plus one day and may not be traded until August 11, 2012 except as permitted by applicable securities legislation and the rules of TSX Venture Exchange.
The Corporation has paid the Agents a cash commission on the sale of the Units and Flow-Through Shares of $29,004.56 and has issued 30,286 non-transferable agents’ options exercisable at a price of $0.55 at any time until 5:00 p.m. (Montréal time) on or before September 30, 2013.
The net proceeds from the Offering will be used to fund the development of Montviel through the Preliminary Economic Assessment, exploration on the Corporation’s graphite properties and for working capital purposes.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
About GéoMégA (ressourcesgeomega.ca)
GéoMégA, which owns 100% of the Montviel Rare Earths/Niobium project, is a Québec mineral exploration company focused on finding economically viable deposits of Minor Metals in Québec. GéoMégA 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 GéoMégA are currently issued and outstanding.
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.
/s/ « Simon Britt »
Chief Executive Officer
For more information contact:
President and CEO
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.