Granting of stock options and shares to settle debts
MONTREAL, January 28, 2021 (GLOBE NEWSWIRE) – Geomega Resources Inc. (“Geomega” or the “Group“(TSX.V: GMA) (OTC: GOMRF), a developer of clean technologies for the mining, refining and recycling of rare earths, announces that the interim financial statements for the 2nd quarter for the half-year ended November 30th 2020 is available approved at the board meeting (“blackboard“), Which took place on January 27, 2021 and has now been published on SEDAR and on the company’s website.
Granting of stock options
Other items approved by the Board include granting 1,350,000 stock options under the Company’s stock option plan at an exercise price of $ 0.34 per option to officers, employees and advisors of the Company and its subsidiary. The options to the directors, officers and employees may be exercised for a period of 5 years from the date of grant and will vest gradually over a period of 24 months from the date of grant at a rate of 1/4 per six month period. The options to consultants can be exercised for a period of 2 years from the date of grant and are transferred gradually over a period of 12 months from the date of grant at a rate of 1/4 per three month period. No stock options were granted at the Annual General Meeting on October 21, 2020.
Debt settlement stocks
In connection with the company’s efforts to clean up its balance sheet pending production start at the demonstration facility, the company announced that it has entered into an agreement to issue shares to settle a debt of $ 47,858 on accrued interest a convertible bond financing that closed on August 13, 2017 and other past consulting services. In consideration for paying the debt, the company will issue a total of 140,754 common shares at an assumed price of $ 0.34 per share. The convertible bonds, which were subscribed by several members of the management and the directors of the company, earned interest at 10% per annum, compounded quarterly. The Notes were converted into common stock in August 2019 at a price of $ 0.12 excluding accrued interest and compound interest. Accordingly, these debt settlement stocks include a current director, Gilles Gingras, and the company’s CEO, Kiril Mugerman. This Agreement qualifies as a “Related Party Transaction” under Regulation 61-101 for the Protection of Minority Holders in Special Transactions (Québec) (“Regulation 61-101“) And the corresponding guideline 5.9 of the TSXV; however, the proposed settlement with the aforementioned insiders is exempt from the formal valuation and approval requirements of the minority shareholders under Regulation 61-101 in accordance with Sections 5.5 (a) and 5.7 (1) (a) of Regulation 61-101. The exemption is based on the fact that neither the market value of the comparison with the insiders nor the consideration paid for it exceeds 25% of the company’s market capitalization. The company did not file a material change report at least 21 days prior to the settlement as the transaction had not yet been finalized and the company wanted the deal to be expeditious for reasonable business reasons.
The settlement is subject to approval by the TSX Venture Exchange.
About Geomega (www.geomega.ca)
Geomega develops innovative technologies for the extraction and separation of rare earth elements and other critical metals that are essential for a sustainable future. With a focus on renewable energies, vehicle electrification, automation and reducing energy consumption, rare earth magnets or neo magnets (NdFeB) are at the center of all these technologies. Geomega’s strategy revolves around gradually reducing the risk of its innovative technology and delivering cash flow and return to shareholders while working directly with the key players in these industries to recycle the magnets that power all of these technologies.
As its technologies are demonstrated on a larger scale, Geomega is committed to working with key partners to extract value from mining forage, tailings and other industrial residues containing rare earths and other critical metals. Regardless of the metal or the source, Geomega takes a consistent approach to reducing environmental impact and helping to lower greenhouse gas emissions by recycling key reagents in the process.
Geomega’s core project is based on ISR (Innord’s Separation of Rare Earths) technology, a proprietary, low-cost and environmentally friendly way to tap a global market worth $ 1.5 billion to recycle magnet production waste and old magnets profitably and safely.
Geomega also owns the Montviel rare earth carbonatite deposit, the largest estimate of the 43-101 bastnaesite resources in North America, and holds over 16.8 million shares of Kintavar Exploration Inc. (KTR.V). a mineral exploration company searching for copper projects in Quebec, Canada.
For more information please contact:
President and CEO
450-641-5119 diam. 5653
Vorticom public relations
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This press release contains statements that may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking information and statements may contain, among other things, statements about future plans, costs, goals or performance of the company or the assumptions on which the foregoing is based. In this press release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “foresee”, “intend”, “plan”, “estimate” are used “Target” and similar words and their negative form are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results and are not necessarily indicative of whether, or when, or when such future performance will be achieved. There can be no assurance that events anticipated by the forward-looking information will occur or will occur, including the commercialization of any of the above technologies or the benefit that the company will derive therefrom. Forward-looking statements and information are based on information available at the time and / or management’s good faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unforeseeable factors, many of which are beyond the control of the Group. These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in the Company’s annual management discussion and analysis for the year ended May 31, 2020, available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those forecast in the forward-looking statements. The company does not intend or undertake any obligation to update or revise any forward-looking information or statements in this press release to reflect future information, events or circumstances or otherwise, except as required by applicable law.