Geomega Resources announces $5 mln private placement financing

Geomega Resources (CVE:GMA) said Friday it has entered into a deal with Industrial Alliance Securities for a brokered $5 million private placement financing.
The offering, which is on a best efforts basis, consists of 2.87 million units priced at 70 cents each, as well as three million flow-through shares at $1 each.
Each unit is made up of one common share and one-half of one common share purchase warrant, the company said.
Each warrant gives the holder the right to subscribe for an extra common share priced at $1.25 for a timeframe of 18 months, after the closing of the offering.
Upon the offering's closing, a cash commission equal to 6.5 percent of the gross proceeds raised will be paid.
Geomega said it will use the new funds to finance the development of Montviel through a preliminary economic assessment, as well as for exploration on its graphite properties.
The brokered placement is slated to close on March 23, subject to customary closing conditions and regulatory approvals.
In February, the rare earths miner unveiled phase two drilling results for its Montviel niobium project near Lebel-sur-Quévillon, Québec.
Highlights from the southwest portion of the Core Zone included 2.08 percent total rare earth oxides (TREO) and 0.22 percent niobium oxide (Nb2O5) over 245.9 metres from 52.6 metres in hole MVL-11-32D, including 3.28 percent TREO and 0.25 percent Nb2O5 over 31.5 metres from 174 metres and 2.59 percent TREO and 0.55 percent Nb2O5 over 19.5 metres from 219 metres.
Meanwhile, hole MVL-11-34 intersected 1.84 percent TREO and 0.30 percent Nb2O5 over 249.75 metres from 187.5 metres, including 2.25 percent TREO over 119.25 metres and 0.39 percent Nb2O5 from 318 metres, and 3.09 percent TREO over 46.5 metres and 0.60 percent Nb2O5 from 318 metres.
The company said it expects to finish phase two drilling, with another 6,300 metres over 13 new holes, by the end of March, with an NI 43-101 compliant Core Zone resource update by the end of the summer.