Geomega Resources closes private placement financing with Cree Mineral board

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 oxide.
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 (TREO).
Geomega, which has a market capitalization of $11.13 million, was trading up by more than two per cent Friday morning, at 50 cents.