GEOMEGA ACQUIRES ADDITIONAL CLAIMS SOUTH OF MONTVIEL
For immediate distribution
MONTREAL, March 21, 2011 – Geomega Resources Inc. (“GéoMégA”) announces that it has acquired 57 additional claims adjacent south to the Montviel property.
Pursuant to a Purchase Agreement dated the 18th day of March, 2011 between Wen Fan and Pierre-Paul Perron, the “Sellers”, and GéoMégA, the Sellers granted GéoMégA the right to purchase a 100 % undivided interest in 57 mining claims adjacent south of Montviel. In order to purchase the claims, GéoMégA shall:
- pay to the Sellers $100,000 on or before the fifteenth business day following regulatory approval; and
- issue to the Sellers 200,000 common shares of GéoMégA on or before the fifteenth business day following regulatory approval; and
- grant the Sellers 200,000 warrants of GéoMégA on or before the fifteenth business day following regulatory approval. Each warrant entitles the holder to purchase one common share at a price of $5.50 for a period of 18 months following the closing.
The Optionor shall be entitled to a royalty equal to a 2% royalty from production payable from the 57 claims.
In addition, pursuant to an Option and Purchase Agreement dated the 11th day of March, 2011 between Services Miniers Mécanex, the “Optionor”, and GéoMégA, the Optionor granted GéoMégA the right to earn a 100 % undivided interest in 16 mining claims adjacent north of the Émilie property. In order to maintain the Option in good standing, GéoMégA shall:
- pay to the Optionor $7,500 upon signing;
- issue to the Optionor 40,000 common shares of GéoMégA on or before the fifteenth business day following regulatory approval; and
- issue 40,000 common shares of GéoMégA on the date which is 12 months following the date of regulatory approval.
The Optionor shall be entitled to a royalty equal to a 2% royalty from production payable from the 16 claims. GéoMégA may at any time purchase 50% of the Royalty Interest from the Optionor for $1,000,000.
All securities issued under the Purchase Agreement and Option and Purchase Agreement are subject to a four (4) month hold period.
Finally, GéoMégA has granted a total of 70,000 incentive stock options with an exercise price of $3.95 per share to one of its directors. These options granted vest gradually over a period of 24 months from the date of the grant, at a rate of ¼ per six-month period and will expire five years from the date of the grant.
Pending regulatory approval, GéoMégA will have 17,468,442 common shares outstanding, 22,601,666 common shares on a fully diluted basis.
About GéoMégA (ressourcesgeomega.ca)
GéoMégA is a Quebec based mineral exploration company focused on the identification and development of economic REE deposits. GéoMégA’s current mineral portfolio is located in the Abitibi and Upper Laurentians regions of Québec.
Currently, GéoMégA has 17,228,442 common shares outstanding and $2.8M in cash.
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 more information contact:
President and CEO