Geomega to raise $206,250 through non-brokered placement

Geomega Resources (CVE:GMA) said Monday that it plans to raise $206,250 through a non-brokered private financing, as it seeks to fund development at its Montviel rare earths project.

The Quebec-based rare earth miner will issue 375,000 units priced at 55 cents per unit, and use the funds to advance a preliminary economic assessment at Montviel. The proceeds will also go toward working capital purposes.

Each unit consists of one common share and one-half purchase warrant, with each warrant giving the holder a right to buy one extra share priced at $1 for a period of 18-months.

The Cree Mineral Exploration Board (CMEB) and an institutional board will participate in the offering, Geomega said in a statement.

"The CMEB's main objective is to facilitate mineral exploration on our Lands to create opportunities for the Cree People that are respectful of our environment and values," CMEB’s chairman Jack Blacksmith said.

"This investment is also strategic for us, since it encourages the diversification of minerals explored on our lands."

The securities issued under the offering have a four month and one day hold period from the date of closing. The offering is slated to close on May 24.

The Montviel rare earth project is 45 kilometres west of the Cree First Nation of Waswanipi and 100 km north of Lebel-sur-Quevillon. An NI 43-101 compliant core zone resource update is expected by the end of the summer.

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.