Monday, 18 June 2012

Geomega signs option for 100% of Oriana tungsten project

Geomega Resources (CVE:GMA) signed Monday an option deal with some vendors that will see the rare-earths miner gain the right to earn a 100 per cent stake in 15 claims completing the Oriana tungsten project.

Oriana is 15 kilometres west of the town of Chapais. It is accessible by road and within one km from the highway 113N, rail road and an electric power line.

Montreal-based explorer Geomega can purchase a 100 percent stake if it issues $150,000 worth of stock and pays $150,000 in cash, on or before the third anniversary of the deal.

The vendors are also entitled to a two percent royalty on a net smelter return from production from the 15 claims.
Geomega, however, can purchase 50 percent of the royalty for $1 million.

All securities issued are subject to a four month hold period. The options transaction remains subject to TSX Venture Exchange approval.

Last year, sampling and a 363 metre diamond drill program on the Oriana project revealed potential for tungsten and gold inside a favourable geological setting.

Geomega expects complete assays in July. Over the next two years, a technical team will work to reveal the full potential of the project, the company said in a statement.

In addition, the exploration-based company also terminated its option agreements with NioGold Mining Corp and Services Miners Mecanex.

The company’s board also appointed PricewaterhouseCoopers LLP, as its auditor. This follows the exit of Raymond Chabot Grant Thornton, Chartered Accountants, at the behest of the board.

Raymond Chabot served as the company’s auditors since its initial public offering in 2010.

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