GeoMegA Resources announces terms of $4.5m financing

GeoMegA Resources (CVE:GMA), a Canadian mineral explorer, reported on Monday the terms of its previously announced $4.5 million private placement financing.
The offering, which will be completed by a syndicate of brokers led by Mackie Research Capital, will consist of 2.25 million units at price of $2 per unit.
Each unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant exercisable for an additional share at a price of $2.50, for a period of two years from the date of closing.
The company has also granted an option, exercisable up until the closing of the offering, to increase the size of the placement by up to $500,000 in units.
Profits from the financing will be used to fund the phase two drill program, initial 43-101 resource calculation, metallurgical tests and preliminary economic assessment of the company's Montviel rare earth element project in Quebec.
In other news, GeoMegA said that it had expected to have the results of the next series of drill holes from Montveil by now, but currently, only one hole is fully assayed, with half of the remaining 12 holes in the core zone partially assayed. Results will be disclosed as soon as they are available, the company added.
The Quebec-based mineral exploration company has properties located in the Abitibi and Upper Laurentian regions of Quebec, and is focused on the discovery and development of clean technology metals deposits. The offering remains subject to TSX Venture Exchange approval.