Highlights of this news release:
- Start of a 3,000 meters initial drilling campaign on Anik;
- Anik gold project 100% owned by GéoMégA (no royalties); and
- Closing of a second private placement for gross proceeds of $225,030.
Montreal, November 11, 2014 – Geomega Resources Inc. (“GéoMégA” or the “Company”) (TSX.V: GMA) announces the start of a 3,000 meters diamond drilling program (the “initial campaign”) on its Anik gold project. The initial campaign will include drilling of the gold showings (Orbi, Mirador and Bobby) discovered last summer during field works as well as testing other satellite targets outlined following geophysical and geochemical surveys.
The Anik project (“Anik”) is located 40 km south of the town of Chapais, in Québec and consists of 151 mining claims covering an area of approximately 8,452 hectares. Anik benefits from a permanent access, public infrastructure and experienced workforce in the immediate vicinity.
The area exhibits strong potential for gold-bearing mineralization with the Joe Mann mine (4.75 Mt at 8.26 g/t Au), Phillibert (1.4 Mt at 5.3 g/t Au) and Lake Meston (1.2 Mt at 6.25 g/t Au) deposits and several new gold discoveries made by Iamgold/TomaGold (at Monster Lake), Vanstar (at Nelligan) and Bold Ventures/Northern Superior (at Surprise Lake) within a few kilometers of the property.
“All preparatory work are completed. Geophysical and geochemical anomalies obtained from recent surveys, twined with the gold showings helped define several drill targets. The initial campaign is most encouraging with the quality of these targets.” commented Alain Cayer, Vice-president Exploration of GéoMégA.
Private placement closing
The Company closed a second private placement consisting of 1,250,166 units (the “Units“) at a subscription price of $0.18 per Unit for gross proceeds of $225,030 (the “Private Placement”).
The Company will use the proceeds of the Private Placement for the initial campaign on the Anik gold project and working capital purposes.
Each Unit consists of one common share (a “Common Share“) and one-half of one 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 $0.25 per share for a period of twenty-four (24) months from November 10, 2014 (the “Closing Date”).
The Common Shares and Warrants acquired by the subscribers are subject to a hold period of four months plus one day and may not be traded until March 10, 2015 except as permitted by applicable securities legislation and the rules of TSX Venture Exchange.
Montviel REE project and Proprietary separation technology:
The Company will provide a status update on its Montviel REE project and proprietary separation technology in the upcoming weeks as it approaches the completion of its metallurgical works and energy balance optimization. Once completed, operating costs to produce a mixed REE concentrate from Montviel will be known and the updated 43-101 resource estimate disclosed. In addition, mixed REE concentrate produced from Montviel ore according to the final flow sheet will be used to resume testing of our separation technology.
NI 43‐101 Disclosure
Alain Cayer, P. Geo., MSc., Vice-President Exploration of GéoMégA, is the Qualified Person under NI 43-101 guidelines who supervised and approved the preparation of the technical information in this news release.
About GéoMégA (www.geomega.ca)
GéoMégA is a mineral exploration company focused on the discovery and sustainable development of economic deposits of metals in Québec. GéoMégA is committed to meeting Canadian mining industry standards and distinguishing itself with its innovative engineering, stakeholders engagement and its dedication to local transformation benefits.
GéoMégA currently has 54,211,782 common shares 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.
For further information please 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.