Geomega Resources (CVE:GMA) said Tuesday it had closed the second and final tranche of its brokered private placement with Industrial Alliance Securities and National Bank Financial Inc.
The second tranche consisted of 435,161 units at a subscription price of 55 cents each and 322,000 flow-through shares at a price of 75 cents each, for additional gross proceeds of $480,839.
This final tranche, together with the first tranche that closed in late March, provided for total gross proceeds of $3.5 million.
Each unit will consist of one common share and one-half of a share purchase warrant.
Each whole warrant will allow the holder to acquire one additional common share at a price of $1.00 each at any time until 5 p.m. (Montréal time) on or before September 30, 2013.
Geomega said the net proceeds will be used to finance the development of its 100 percent-owned Montviel project through to preliminary economic assessment, as well as for exploration on the company's graphite properties and for working capital purposes.
The Montviel rare earth niobium project is located 45 kilometres west of the Cree First Nation of Waswanipi and 100 kilometres north of Lebel-sur-Quevillon.
Last month, the company said it completed phase 2 drilling on the project.
The rare earths miner also hired Golder Associates to perform an array of tests needed for the preliminary economic assessment for Montviel.
Montviel, one of the largest total rare earth oxide resources outside of China, has the potential for a major near term role in the growing magnet sector due to its proximity to infrastructure and labour.
Geomega said that the common shares and the warrants acquired by the subscribers in this second tranche are subject to a hold period of four months plus one day, and may not be traded until August 11, 2012 except as permitted by applicable securities legislation and the rules of the TSX Venture Exchange.
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