MONTREAL, May 5 /CNW Telbec/ - GEOMEGA RESOURCES INC. ("GéoMégA") and
NioGold Mining Corporation ("NOX") are pleased to jointly announce that
they have entered into an amending agreement with respect to the
Montviel and Pump Lake Option Agreement (see GéoMégA's news release
dated November 11, 2010).
Under the amendment, GéoMégA will immediately acquire a 100% interest in
the Montviel Property by issuing 1,525,000 common shares to NOX, and
NOX will retain a 2% Net Output Return royalty on the Montviel Property
with no buyback right for GéoMégA. In addition, GéoMégA will, upon
securing 70% of the capital requirements for commercial production
specified in the feasibility study (as that terms is defined in
National Instrument 43-101) for the Montviel Property, pay $4,500,000
to NOX in cash or common shares at the election of NOX, which amount
shall be treated as non-refundable advanced royalty payment.
GéoMégA will continue to have an option to acquire up to a 100% interest
in the Pump Lake Property. In order to exercise the option for an
initial 75% interest, GéoMégA shall incur an aggregate of $400,000 in
exploration expenditures in stages on or before September 30, 2014.
Upon completion of these expenditures, the GéoMégA will have the option
to either abandon the property or form a joint venture with NOX. Upon
formation of the joint venture, GéoMégA will have an option to acquire
the remaining 25% of the Pump Lake Property, exercisable by written
notice given on or before August 31, 2017, and by (i) paying $7,500,000
to NOX in cash or common shares (the election on one-half of such
amount to be made by each party), (ii) granting to NOX a 1% Net Output
Return royalty on the Pump Lake Property, of which GéoMégA may buy back
one-half (0.5%) for $500,000; and (iii) reimbursing NOX for its
contributions to the joint venture, together with a non-cumulative 20%
premium, payable in cash or common shares at the election of NOX.
All these transactions are subject to the approval of the TSX Venture.
GéoMégA is a Quebec based mineral exploration company focused on the
discovery and development of economic REE deposits. GéoMégA's
exploration properties are located in the Abitibi and Upper Laurentian
regions of Quebec.
Currently, GéoMégA has 17,985,976 common shares outstanding and $2.4M in
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture exchange)
accepts responsibility for the adequacy or accuracy of this release.
For further information:
Simon Britt, CA
President and CEO