Matamec Explorations Inc. is issuing today an update on the investment project of $4 million CAD by Resources Québec in the HREE Kipawa, announced by the Company on April 2nd.
In the decree of March 5th, the government of Quebec highlights the economic and technological importance of the Kipawa rare earths project. It mandates Investissement Québec, through its subsidiary Ressources Québec inc., to subscribe to $1 million CAD in Matamec equity and a minority stake of $3 million CAD in the HREE Kipawa deposit. This investment is part of an investment project of $6 million CAD in which Matamec will invest $2 million CAD.
Matamec announces that it now holds a 100% interest in the HREE Kipawa deposit. Starting today, various business opportunities that have been explored in the past, are now possible. Adding a financial partner like RQ and having the support of the government of Quebec are particularly important in the development of rare earth mining project located in Témiscamingue.
The investment project of RQ is currently in the due-diligence phase. It includes the normal steps of such a process. It also includes the negotiation of a joint venture agreement between RQ and Matamec, to enable RQ to have a minority stake in the Kipawa rare earths deposit.