Toyotsu Pays $1.04 Million to Matamec for Continued Execution of Kipawa
Goal of Kipawa mine project is to supply heavy rare earths for the
production and marketing of hybrid and electric vehicles
MONTREAL, QUEBEC -- (Marketwire) -- 02/19/13 -- Matamec Explorations
Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) is
pleased to announce that the Company has received $1.04 million CDN
from its Japanese partner Toyotsu Rare Earth Canada Inc. ("Toyota" or
"TRECan"), a subsidiary of Toyota Tsusho Corp. ("TTC"). The goal of
the Kipawa mine project is to supply Toyota with heavy rare earths
("HREE") for the production and marketing of hybrid and electric
To date Matamec has received $13,195,629 CDN of the maximum $16M CDN
for the completion of a definitive feasibility study on the Kipawa
HREE deposit, which is expected in the second quarter of 2013. The
Company will be issuing an update on the feasibility study by the
latest for the upcoming PDAC conference which takes place March 3-6,
2013 in Toronto, Canada.
"I am very pleased by the advancement of our efforts being made by
the Matamec team on the Kipawa feasibility study," said Andre
Gauthier, President and CEO of Matamec Explorations. "The continued
financial commitment by Toyotsu positions Matamec strategically to be
one of the first companies to supply heavy rare earths for hybrid and
electric vehicles in North America."
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 $1.04M CDN
is the fourth of a number of successive payments in the completion of
the $7.5M CDN, but the fifth 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.
About Toyotsu 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 Kipawa HREE deposit
JVA. TTC has four rare earth projects globally including in India,
Vietnam, Indonesia (HREE) and Canada (HREE Kipawa JV). For further
information, please view the TTC 2012 Annual Report online.
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
Edward Miller, Director IR
(514) 844-5252 ext. 205
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