Geomega completes a $1 million equity financing with Michael Gentile, CFA and appoints him as strategic advisor

GeoMegA Resources

MONTREAL, May 04, 2022 (GLOBE NEWSWIRE) — Geomega Resources Inc. (“Geomega“or the”society” (TSX.V: GMA) (OTC: GOMRF), a developer of clean technologies for the extraction, refining and recycling of rare earths and other critical materials, is pleased to announce the closing of a private placement non-brokered $1,045,120 (the “Offering”) with Michael Gentile, CFA and his appointment as strategic advisor to the Company. As a result of the Offering, the proposed grant of options combined with the securities indirectly owned or controlled by Mr. Gentile prior to this Offering, Mr. Michael Gentile will now hold a 9.99% interest in the outstanding common shares of the Company on a partially diluted basis. Additionally, following the expansion of the Company’s business into other metals and fluxes, the scope of the patent and royalty ownership agreement with Dr. Pouya Hajiani, the Company’s Chief Technology Officer, has been updated.

Mr. Gentile is considered one of the leading strategic investors in the junior mining sector, holding significant positions in more than 15 junior mining companies. Mr. Gentile is currently a strategic advisor to Arizona Metals (AMC-V) and a director of Northern Superior Resources (SUP-V), Roscan Gold (ROS-V), Radisson Mining Resources (RDS-V) and Solstice Gold (SGC-V). ). Mr. Gentile recently co-founded Bastion Asset Management, an investment management firm based in Montreal, Quebec, and was previously a senior portfolio manager at Formula Growth Limited.

“I have followed Geomega closely for several years and they have done a tremendous job developing proprietary technologies that seek to address some of the key issues facing the global economy and environment in the future. Namely, increasing the efficiency of the extraction process and the supply of critical metals and rare earths for electric vehicles in a way that can have a major positive impact on the environmental footprint of these crucial projects. Geomega’s technologies are targeting large and open market opportunities and, after years of research and development, are approaching a critical stage of commercialization potential which can have a significant impact on Geomega’s value going forward. Geomega’s story is not widely known or understood by investors and I hope, through my involvement as a leading shareholder and strategic advisor to the company, to help the company gain exposure it deserves in the global investment community,” commented Michael Gentile, CFA.

“We are very pleased that Mr. Gentile is joining Geomega as a strategic advisor and becoming a major shareholder of the Company. His knowledge of financial markets in both Canada and the United States will help increase the Company’s investor base. As a mining investor, Michael recognized the importance of closing the loop in industry and the economic potential of extracting metals from mining and industrial waste. Geomega’s development of its rare earth recycling technology and its application to bauxite tailings and the Montviel project are the building blocks of what Geomega is striving to accomplish in order to close this loop,” commented Kiril Mugerman, President and CEO of Geomega and Innord.

Offer Details
The Offering consists of 4,354,667 Units (each a “Unit”), priced at $0.24 per Unit, for gross proceeds to the Company of $1,045,120. Each Unit consists of one common share (each a “Share”) and one full share purchase warrant (a “Warrant”). Each warrant entitles its holder to acquire one additional share, at a price of $0.32 per share, until the date which falls 36 months after the closing of the placement. The securities issued under the Offer are subject to a retention period of four months and one day from their issue. The placement is subject to final acceptance by the TSX Venture Exchange. The proceeds of the placement will be applied to the general working capital of the company.

Appointment of strategic advisor
Mr. Gentile was also granted 1,400,000 stock options, at an exercise price of $0.24 per share, for a period of 2 years in accordance with the terms of the stock option plan. purchase of Company shares. Stock options will vest as follows: (a) 400,000 options will vest immediately; and (b) 1,000,000 options will vest in two separate tranches of 500,000 based on the achievement of certain performance targets.

Updated Patent Ownership and Royalty Agreement
Following the recent expansion of Geomega’s business into other metals and fluxes, the Company has updated the scope of its patent ownership and royalty agreement dated August 11, 2017 (the “Agreement”) with Dr. Pouya Hajiani, its chief technology officer, to include these expanded activities and to make confirmatory changes. Detailed information regarding the agreement can be found in the Company’s press release dated August 14, 2017 and in the management information circular dated September 13, 2017 which is available on SEDAR (www.sedar.com). The Agreement was approved by the Board of Directors and by the shareholders at the annual meeting of the Company on October 19, 2017. A copy of the updated agreement will be filed on SEDAR.

About Geomega (www.geomega.ca)
Geomega develops innovative technologies for the extraction and separation of rare earth elements and other critical metals essential for a sustainable future. With a focus on renewable energy, vehicle electrification, automation and reduction of energy consumption, rare earth magnets or neo-magnets (NdFeB) are at the heart of all these technologies. Geomega’s strategy is to progressively de-risk its innovative technology and provide cash flow and return value to shareholders while working directly with key players in these industries to recycle the magnets that power all of these technologies.

As its technologies are demonstrated on a larger scale, Geomega is committed to working with major partners to help extract value from mining feeds, tailings and other industrial residues that contain rare earths and other critical metals. Regardless of the metal or source, Geomega takes a consistent approach to reducing environmental impact and helping to reduce greenhouse gas emissions through the recycling of key process reactants.

Geomega’s main project is based on ISR (Innord’s Separation of Rare Earths) technology, a proprietary, low-cost and environmentally friendly way to tap into a global market of C$1.5 billion to recycle waste from magnet production and end-of-life magnets in a cost-effective and safe manner.

Geomega is applying its technology to bauxite residue, the waste from alumina production, and is working with Rio Tinto to develop the technology. The recovery of bauxite residues could open a market of more than 17.5 billion dollars where 175 million tons of new waste are generated annually.

Geomega also owns the Montviel rare earth carbonatite deposit, the largest NI 43-101 bastnaesite resource estimate in North America and owns over 16.8 million shares, representing approximately 14% of the issued and outstanding shares. circulation, of Kintavar Exploration Inc. (KTR.V), a mining exploration company exploring copper projects in Quebec, Canada.

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Cautions Regarding Forward-Looking Statements
Neither the 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.

This press release contains statements that may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking information and statements may include, among other things, statements regarding the Company’s future plans, costs, objectives or performance, or assumptions underlying any of the foregoing. In this press release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend of”, “plans”, “estimates”, “Target” and similar words and their negative form are used to identify forward-looking statements. Forward-looking statements should not be construed as guarantees of future performance or results, and will not necessarily be precise indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that the events anticipated by the forward-looking information will occur or will occur, including with respect to the commercialization of any of the technologies mentioned above, or if any of them will , what benefits the Company will derive from it. Forward-looking statements and information are based on information available at the time and/or management’s good faith belief regarding future events and are subject to known and unknown risks, uncertainties, assumptions and other factors. unpredictable, many of which are beyond the company’s control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in the Company’s Annual MD&A for the fiscal year ended May 31, 2021, which is available on SEDAR at the address www.sedar.com; they could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company does not intend, nor undertake any obligation, to update or revise any forward-looking information or statements contained in this press release to reflect subsequent or other information, events or circumstances, except as applicable laws require it.

Carol M. Barragan