Date Closed

March 16, 2012

Lead Office

Montréal

Value

1.50 Million CAD

On March 16, 2012, GéoMégA Resources Inc. announced the grant of a C$1.5 million loan by SIDEX, Limited Partnership.

The loan is secured by an hypothec on the universality of GéoMégA's receivable from Revenu Québec tax credits for the fiscal years ended in 2011 and 2012 from Revenu Québec and related to mineral exploration. The loan must be repaid on the earlier of December 31, 2013 or upon the receipt of said tax credits. The loan bears interest at an annual rate of 8%. 

GéoMégA Resources, headquartered in Saint-Lambert, Québec, owns the Montviel Rare Earths/Niobium project which is located approximately 45 km west of the Cree First Nation of Waswanipi and 100 km north of Lebel-sur-Quévillon in the southern territory covered by the Québec’s "Plan Nord". The net proceeds from the financing will be used to fund the development of the Montviel property through the preliminary economic assessment, exploration on the corporation’s graphite properties and for working capital purposes.

SIDEX was established by the Government of Québec and the Solidarity Fund QFL. The mission of SIDEX is to invest in companies engaged in mineral exploration in Québec in order to diversify Québec's mineral base, encourage new exploration models, stimulate investment for new commodities in existing districts and open new territories with high potential for discovery.

McCarthy Tétrault LLP represented SIDEX, the lender, with a team led by Patrick Boucher.