Geomega Resources (TSX VENTURE:GMA) announces a non-brokered private placementof units for proceeds of $206,250 with the Cree Mineral Exploration Board and an institutional fund. The Cree Mineral Exploration Board (“CMEB”) was created following the signing of the Paix des Braves between the Crees of Eeyou Istchee and the Government of Québec.
“The CMEB’s main objective is to facilitate mineral exploration on our Lands to create opportunities for the Cree People that are respectful of our environment and values, this investment is also strategic for us, since it encourages the diversification of minerals explored on our lands” comments Mr. Jack R. Blacksmith, Chairman of the Cree Mineral Exploration Board.
“The Crees of Eeyou Istchee are important stakeholders in the Montviel project and Quebec’s Plan Nord. Their participation in the Offering solidifies our relationship with the acceptance of GéoMégA on the territory. ” comments Simon Britt, CEO of GéoMégA.
GéoMégA will issue 375,000 units (the “Units”) at a price of $0.55 per Unit. Each Unit consists of one common share and one-half of a share purchase warrant. Each whole Warrant entitles the holder thereof to acquire one additional common share at a price of $1.00 per share (a “Warrant Share”) at any time for a period of eighteen (18) months following the closing of the Offering.
The proceeds from the Offering will be used to fund the development of Montviel through the Preliminary Economic Assessment and for working capital purposes.
The Offering is scheduled to close on or about May 24, 2012…
Totally agree. Headline reads like a failed private placement.
I’d rather take the facebook IPO
@Bart
Facebook has what, a potential 5 bagger return if everything goes absolutely right in the next 2-3 years? This one would be more like a 50 bagger … and we actually have the potential to help influence what and how they do things … so you can take FB and shove it you know where.
Instead of giving Facebook the FB ticker, I think FP is more appropriate. Stands for face plant.
FB stands for Fadebook?
This is an interesting deal for the CMEB. They must be convinced that the “fast track” to production will be successful in the 18 month window provided by the warrants. If the warrants turn out to be a winning bet, the way I see it they will control 562500 shares valued at a minimum of $1/share. They will have aquired the shares at $.3666 each. If I’m not mistaken, if the market price falls below this level they start losing money.
Hopefully for the rest of us, this 36 cent a share level will provide strong support going forward.
@forwill
The CMEB only took down a portion of the placement, we are told about $50,000. In any case, the cost basis would not be $0.3666. Having acquired shares at $0.55 and the presumably exercising the half warrant at $1 the cost basis would be $0.70 per share.
@Zurbo
Thanks for setting me straight. Simple math on the warrants, duh! An OPTION to buy @ $1 at a future date. Hopefully this one will be trading much higher before they expire.
I can’t find anything more recent about GMA. As there has been no coverage or mention of late (some drill results, and, god knows why, a tungsten prop’ signing), have you sold? Do I take my 68% loss?
Hey, but it’s not all bad, this time I have a relevant company to select!
@Dave
Hi Dave,
Here’s a link to a recent presentation they held in Munich which isn;t yet on their site:
http://www.google.nl/url?sa=t&rct=j&q=geomega%20charles%20hotel%20m%C3%BCnchen%20presentation&source=web&cd=1&ved=0CGwQFjAA&url=http%3A%2F%2Fwww.vbw-bayern.de%2Fagv%2Fdownloads%2F66566%40agv%2F3%2BBritt.pdf&ei=z30AUMDwF4jE0QWs1qWeBw&usg=AFQjCNFF0KE6x15XG1S6VEgy6dH8kefKHw
What I can see is that the final 43-101 which includes the last 24,000 meters of drilling should be out any minute. Since lately they have been reporting Neodymium,Niobium and Iron ore I’d expect the report to concentrate on that.
And then end of year we should see a PEA come out.
Agree that the price is very disappointing, but the company seems to be doing fine and is still making progress.
@Tweetie
Thanks, … and a flow sheet, although how much is wishful and how much confirmed, and a Gantt chart showing pilot plant about to start construction? Let’s hope it is cheap to build (pdf shows $2.4m at start of June).
Ah, then I find that the flow sheet and Gantt is also in the May co’ presentation that is on the web site, pdf dated May 8th (although presumably not published until after the preliminary metallurgy NR?), so when the metallurgical NR was covered here http://www.metalaugmentor.com/reviews/geomega-announces-preliminary-results-on-montviels-metallurgy/ and intention to follow-up mentioned it seems odd that the Flow and Gantt didn’t get coverage in due course.