Press Releases

GéoMégA closes $5M private placement

PRESS RELEASE
For immediate distribution

Montréal, July 8, 2011 – Geomega Resources Inc. (GeoMegA or the “Company”) (TSXV:GMA.V) announces the closing of the $5 million private placement (the “Offering”) previously announced by the Company on June 30, 2011.

The Offering was completed by a syndicate of agents led by Mackie Research Capital Corporation, and included Global Hunter Securities LLC, Jacob Securities Inc. and Versant Partners Inc. (collectively, the “Agents”)

Pursuant to the Offering, 2,127,659 units at a price of $2.35 (the “Units”) were issued for total gross proceeds of $4,999,999. Each Unit consists of one common share and one common share purchase warrant (the “Warrants”). Warrant is exercisable at any time for one common share at a price of $2.85 until July 8, 2013.

In connection with the Offering, the Company paid the Agents a fee of $328,781 and issued to the Agents 134,750 compensation options, each compensation option entitling the holder thereof to acquire Unit at a price of $2.35 per Unit until July 8, 2013.

All securities pursuant to the Offering are subject to a four (4) month and one-day hold period.

Proceeds of the Offering will be used to finance the Phase 2 drill program, initial resource calculation in compliance with National Instrument 43-101 reporting standards, metallurgical tests and preliminary economic assessment of the Company’s Montviel REE project in Quebec.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About GéoMégA (ressourcesgeomega.ca)
GeoMegA, which owns 100% of the Montviel property, is a Quebec mining exploration company focusing on finding economically viable deposits of elements needed by clean technologies. GeoMegA is committed to meeting the highest mining industry standards and distinguishing itself with its expertise, know-how and its support and respect for local communities and the environment.

GeoMegA currently has 21,735,399 common shares outstanding and is well funded.

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”
Simon Britt
Chief Executive Officer

For more information contact:
Simon Britt
President and CEO
GéoMégA
450 465-0099
sbritt@ressourcesgeomega.ca

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.

 

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