Jan. 28, 2011 (Canada NewsWire Group) --
MONTREAL, Jan. 28 /CNW Telbec/ - Geomega Resources Inc. ("GéoMégA") announces the closing of a first tranche of a non-brokered private placement (the "Placement") of units for proceeds of $900,000 with private investors and institutional funds. The securities issued under the Placement are subject to a four (4) month hold period.
GéoMégA issued 1,000,000 units at a price of $0.90, each unit consisting of one (1) common share and one-half warrant. Each full warrant entitles the holder to purchase, during a period of eighteen (18) months from the date of closing, one common share at an exercise price of $1.35 per share. An additional tranche of $100,000, subject to the approval of the TSX Venture Exchange, is expected to close on or about February 4, 2011.
"The proceeds of the Placement strengthens GéoMégA's balance sheet and will be used for continued exploration drilling at the Montviel property and initial exploration work on our other rare earth elements ("REE") properties." comments Simon Britt.
GéoMégA is a Quebec based mineral exploration company focused on the identification and development of economic REE deposits. GéoMégA's current mineral portfolio is located in the Abitibi and Upper Laurentians regions of Québec.
Currently, GéoMégA has 15,472,141 common shares outstanding and $2.8M in cash.
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.
Simon Britt, CA
President and CEO