GEOMEGA RESOURCES INC. CLOSES A FIRST TRANCHE OF $2,703,750 FOR ITS INITIAL PUBLIC OFFERING
For immediate distribution
MONTREAL, September 30, 2010 – Geomega Resources inc. (« GeoMegA ») is pleased to announce that it has closed the first tranche of its initial public offering (« IPO ») by prospectus for gross proceeds of $2,703,750. Industrial Alliance Securities inc. (« IAS ») is acting as agent in connection with the IPO, for which the prospectus was filed and receipted pursuant to the provisions of the Alberta, Ontario and Quebec Securities Acts. The common shares of GeoMegA will commence trading on TSX Venture Exchange under the symbol GMA at the opening on September 30, 2010.
At the closing of this first tranche of the IPO (the « Closing »), GeoMegA issued 7,725,000 units at a price of $0.35, each unit consisting of one (1) common share and one-half warrant. Each full warrant entitles the holder to purchase, during a period of eighteen (18) months from the date of the Closing, one (1) common share at an exercise price of $0.55 per share. The final tranche of $201,250 is expected to close on or about October 7, 2010.
In consideration for its services, IAS received a cash commission of $169,722 and 386,250 options, each option entitling IAS to purchase one (1) common share at an exercise price of $0.35 per share, during a period of eighteen (18) months from the date of the Closing.
« We are very pleased with the closing of the first tranche and ensuing listing today. The Letter Agreement with NioGold Mining Corporation (« NioGold »), which triggered the initial public offering process, was signed five (5) months ago on April 30, 2010″ commented Mr. Benoit Moreau, President and Chief Executive Officer. « During that short period of time, GeoMegA also put together a portfolio of properties constituted of carbonatites and other alkaline complex, having good localisation and road access. World class deposits of rare earth elements (« REE ») and niobium such as Mountain Pass in California (USA), Bayan Obo in China, Mount Weld in Australia and Araxà in Brazil all occur in carbonatites. By focusing on carbonatites, GeoMegA hopes to position itself among the leaders in 21st century strategic metals. »
Net proceeds from the IPO will be used for exploration of the Montviel, Pump Lake and Sydney properties.
The Montviel property, located 100 km of Lebel-sur-Quévillon in the Abitibi area of Quebec, encompasses the Montviel carbonatite complex which extends over an area of 32 km2. The exploration program will focus on the 3.1 km2 core of the carbonatite complex.
GeoMegA also confirms that it has signed a definitive option agreement with NioGold, as discussed in the prospectus.
Upon Closing, GeoMegA has also granted 1,358,000 options to Directors, Officers and consultants. Each option entitling the holder to purchase one (1) common share at an exercise price of $0.35 per share, during a period of five (5) years from the date of grant.
About GeoMegA (ressourcesgeomega.ca)
GeoMegA is a Quebec based mineral exploration company focused in the exploration of carbonatites and other alkaline complex for rare earth elements and niobium. GeoMegA’s current properties portfolio, located Abitibi and Upper Laurentians regions of Quebec, include:
– Option to earn up to 75% interest in the Montviel and Pump Lake carbonatites;
– 100% interest in the Sydney property, approximately 125 km north of the town of St-Michel-des-Saints;
– 100% interest in the Oriana property, 20 km west of the town of Chapais in the Abitibi area. The property is
associated to the Dolodau carbonatite;
– 100% interest in the Émilie property, approximately 30 km east of the town of Lebel-sur-Quévillon in the
Abitibi region. The property is associated to the Grevet carbonatite.
Currently, GeoMegA has 13,580,001 common shares outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture exchange) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION, PLEASE CONTACT:
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.