Geomega Resources (CVE:GMA) closed on Friday its previously announced non-brokered private placement financing with the Cree Mineral Exploration Board and an institutional fund, raising $206,250.
The placement consisted of 375,000 units priced at 55 cents apiece.
The company said it will use the proceeds to advance its preliminary
economic assessment for the Montviel rare earth project in Quebec.
Each unit comprises of one common share and one-half share purchase
warrant, with each whole warrant giving holders a right to buy another
share priced at $1 before December 2, 2013.
Last month, the company announced the latest diamond drill results at
its Montviel project, which included an enrichment zone of niobium
Among the highlights, drill hole MVL-12-59B hit 2.06 percent total
rare earth oxides (TREO) and 1.38 percent niobium oxide over 95.5
metres. This included 2.42 percent TREO and 3.08 percent niobium over
29.6 metres from 351.4 metres.
Geomega said hole MVL-12-59B intersected silico-carbonatite at the
start of drilling from zero to 318 metres and then intersected
ferro-carbonatite from 318 to 501 metres.
Additional results from the remaining phase 2 assays, which include
over 15,569 metres in 35 diamond drill holes, will be released once
check assays are completed, said the company.
Niobium is used in the manufacturing of high strength, low alloy
steels specifically used in manufacturing green technologies, turbines,
aerospace, automobiles, oil and gas.
The Montviel rare earth project rests about 45 kilometres west of the Cree First Nation of Waswanipi, and 100 km north of Lebel-sur-Quevillon, Quebec.
The project, one of the largest TREO resources outside China, has the
potential for a significant near term role in the growing magnet sector
due to its proximity to infrastructure and available labour.
Also in May, Geomega unveiled preliminary metallurgical results from
the property, with recoveries as high as 97% total rare earth oxides
Geomega, which has a market capitalization of $11.13 million, was
trading up by more than two per cent Friday morning, at 50 cents.