Matamec Receives a Second Payment of 1.1M CAD from Toyotsu Rare Earth Canada
November 01 2012 - 10:15AM
Marketwired
Matamec Explorations Inc. ("Matamec" or the "Company") ( TSX
VENTURE:MAT)(OTCQX:MHREF) is pleased to announce that the Company
has received a second payment of 1,119,776 CAD from its Japanese
partner Toyotsu Rare Earth Canada Inc. ("TRECan"), a subsidiary of
Toyota-Tsusho Corp. ("TTC").
Matamec began discussions with TTC, a subsidiary of Toyota Motor
Group, on January 25th, 2010, and both companies signed a
Confidentiality Agreement on April 1st, 2010. After two years of
negotiations, Matamec and TTC signed a Memorandum of Understanding
("MOU") on December 7th, 2011. Matamec received a payment of 1.5M
CAD on February 2012 to bind the MOU with TTC.
With the signature of the Joint Venture Agreement ("JVA") by
which TRECan can acquire 49% undivided interest in the Kipawa HREE
Deposit, Matamec received 8.5M CAD for the first 25% undivided
interest on July 18, 2012. To acquire the second 24% undivided
interest, TRECan has to pay to Matamec a maximum amount of 7.5MCAD.
The 1.1M CAD is the first of a number of successive payments in
completion of the 7.5MCAD, but the second overall payment received
from TRECan. Matamec will transfer the 24% undivided interest to
TRECan when it will receive a cumulative maximum amount of 7.5M
CAD.
With this payment, Matamec receives a cumulative amount of
9,619,776 CAD on a maximum 16M CAD for the feasibility study on the
Kipawa HREE Deposit. The results of which are expected in the
second quarter of 2013.
Andre Gauthier, president of Matamec, says that "the JVA has
many tangibles, but also many valuable intangibles. For the
tangibles, TRECan is a strategic partner and the JVA is only for
the Kipawa HREE deposit. With the JVA signed July 2012 between
TRECan (49%) and Matamec (51%), TRECan provided $16MCAD for a NI
43-101 independent bankable feasibility study. Matamec is operator
of the JV. TRECan will sign an off-take agreement to buy 100% of a
mixed rare earths concentrate and TRECan will arrange with Matamec
the financing through to production".
The president adds that "for the intangibles, the JVA includes
mutual collaboration to accelerate the development of the Kipawa
HREE Deposit and technical assistance from the Worldwide Toyota
Network (critical to fast track the project). This agreement
secures a heavy REE supply for the production and marketing of
hybrid vehicles".
About TTC and TRECan
Established for more than 60 years and subsidiary of Toyota
Motor Group, TTC is a general trading company that develops
business together with over 400 consolidated group companies in
Japan and overseas, with customers around the world, via a global
network covering Japan and more than 60 other countries worldwide.
TRECan is a subsidiary of TTC especially created for the JVA for
the Kipawa HREE deposit.
About Matamec
Matamec Explorations Inc. is a junior mining exploration company
whose main focus is in developing the Kipawa HREE deposit with
TRECan. Following the positive conclusion of the PEA study filed on
SEDAR in March 2012 and the hiring of a V-P Project development and
Construction, Matamec and TRECan decided to move directly to the
feasibility study. The March 2012 press release highlighted that
the project has robust economics such as: $606 million before-tax
value (NPV8%), a 36.9% before-tax IRR, $2.8 billion revenue, $1.67
billion EBITDA, a before-tax payback period of 2.4 years, etc. (see
press release dated January 30, 2012).
In parallel, the Company is exploring more than 35km of strike
length in the Kipawa Alkalic Complex for rare
earths-yttrium-zirconium-niobium-tantalum mineralization on its
Zeus property.
The company is also exploring for gold, base metals and platinum
group metals. Its gold portfolio includes the Matheson JV property
located along strike and in close proximity to the Hoyle Pond Mine
in the prolific mining camp of Timmins, Ontario.
In Quebec, the Company is exploring for lithium and tantalum on
its Tansim property and for precious and base metals on its Sakami,
Valmont and Vulcain properties. As well, it is exploring for gold
together with Northern Superior Resources Inc. on the
Lesperance/Wachigabau property.
"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."
Contacts: Matamec Explorations inc. Andre Gauthier, President
(514) 844-5252info@matamec.com www.matamec.com
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