Matamec Receives a Second Payment of 1.1M CAD from Toyotsu Rare Earth
MONTREAL, QUEBEC -- (Marketwire) -- 11/01/12 -- 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
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 te
chnical 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
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
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
"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."
Matamec Explorations inc.
Andre Gauthier, President
Press spacebar to pause and continue. Press esc to stop.