Jan 29 2015
Matamec Explorations Inc. ("Matamec" or the "Corporation") is pleased to announce the creation of a joint venture (the "Joint Venture") with Ressources Québec inc. ("RQ") pursuant to a joint venture agreement entered into today between the Corporation and RQ (the "Agreement").
Pursuant to the Agreement, RQ, acting as agent for the Québec government, has acquired a 28% undivided interest in the Kipawa heavy rare earths deposit (the "Deposit") for a consideration of $3 million paid into the joint account of the Joint Venture.
The Joint Venture has been created in order to pursue the development of the Deposit. Through this transaction, the Corporation and RQ intend to achieve the following objectives:
- optimisation of metallurgical processes (including individual separation of rare earths) and building of a second pilot plant;
- updating of the Regulation 43-101 compliant feasibility study published in October 2013;
- continuation of environmental studies;
- continuation of the social acceptability process with aboriginal peoples;
- continuation of discussions with strategic industrial and financial partners.
The Joint Venture will be managed by a management committee consisting of a representative of each of the two parties and Matamec will act as the manager of the Joint Venture.
André Gauthier, President of Matamec, stated that: "The creation of the Joint Venture in partnership with Ressources Québec, a partner of the highest reputation in the mining sector, allows for the continued development of the Kipawa heavy rare earths deposit. At the same time, this transaction contributes towards positioning Québec, Témiscamingue and Matamec at the forefront of the quest for heavy rare earths production outside of China."
In the event that the parties decide to move to the construction and commercial production phase of the Deposit, they have agreed that they could then decide at such time to establish a new legal structure or to enter into a new joint venture agreement, any other contractual arrangement or a commercialization agreement governing their relationship and their rights and obligations in connection with the building of infrastructure and the commercial production and commercialization of the Deposit.
The parties acknowledge that one or several additional partners may join the Joint Venture on terms and conditions to be negotiated and approved by each of them.
The transactions contemplated by the Joint Venture remain subject to the final approval of the TSX Venture Exchange. A copy of the Agreement will be available under the Corporation's profile on SEDAR at www.sedar.com.
Source: http://www.matamec.com/