Matamec Receives Third Payment from Toyotsu Rare Earth Canada
MONTREAL, QUEBEC -- (Marketwire) -- 12/04/12 -- Matamec Explorations
Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) is
pleased to announce that the Company has received a third payment of
263,887 CDN from its Japanese partner Toyotsu Rare Earth Canada Inc.
("TRECan"), a subsidiary of Toyota-Tsusho Corp. ("TTC").
Under the terms of the Joint Venture Agreement ("JVA") by which
TRECan can acquire 49% undivided interest in the Kipawa HREE Deposit,
Matamec received 8.5M CDN 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 7.5M CDN. The 263,887 CDN
is the second of a number of successive payments in completion of the
7.5M CDN, but the third 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 CDN.
To date Matamec has received $10,147,550 CDN of the maximum $16M CDN
for the completion of a definitive feasibility study on the Kipawa
HREE deposit, which are expected in the second quarter of 2013.
"This agreement secures a heavy REE supply for the production and
marketing of hybrid vehicles and adds significant tangible value to
Matamec. TRECan is a well-recognized strategic partner that has
committed $16M to Matamec to complete a definitive feasibility study;
and signing an agreement to buy 100% of a mixed rare earths
concentrate," said Andre Gauthier, President and CEO of Matamec
Explorations. TRECan also brings intangible value including a mutual
collaboration to accelerate the development of the Kipawa HREE
deposit and technical assistance through the worldwide Toyota
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 VP 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."
Andre Gauthier, President
(416) 238-1414 ext 233
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