Matamec Announces the Closing of the Sale of its Royalties in the Timmins Gold Camp to Metalla Royalty & Streaming Ltd.
June 5, 2017 (Source) – Net Smelter Royalties on the Hoyle-Matheson and Montclerg Properties Sold
Matamec Explorations Inc. (“Matamec” or the “Company”) (TSX VENTURE:MAT)(OTCQB:MHREF) is pleased to announce the closing of the sale and purchase agreement with Metalla Royalty & Streaming Ltd. (“Metalla”) of its royalties on the Hoyle-Matheson Royalties (HMR) Property and the Montclerg Property.
The purchase price paid for the royalties is made up of $500,000 in cash and Two Million (2,000,000) shares of Metalla valued at $0.50 per share. Matamec received warrants to purchase another One Million (1,000,000) shares of Metalla at $0.75 per share for a period of two years. The shares and warrants cannot be traded for a period of 12 months from the closing date.
“With the sale of these royalties, Matamec will be able to focus its efforts on exploration activities at its owned properties,” said André Gauthier, Matamec’s President and CEO. “We can develop the potential of our properties in our Gold portfolio, as well as those with energy and technology-related metals held in Matamec’s Energy portfolio.”
Kipawa Rare Earth Joint Venture: Agreement on Use of Funds
Matamec also announces that it has entered into an agreement with Ressources Québec, a Matamec shareholder and partner in the Kipawa Rare Earth Joint Venture (the “Joint Venture”), for the use of $ 200,000 from the Joint Venture’s joint account for current operations purposes. Matamec has undertaken to repay this amount no later than November 13, 2017. As a guarantee for the repayment of this amount, Matamec has granted a hypothec on certain tax credits receivable for the years 2015 and 2016 and pledged certain securities.
Get our daily investorintel update
Located in Montreal (Québec), Matamec Explorations Inc. is a junior mining exploration company in which activities are based on two main axes of development: gold, and key elements for technologies related to energy with properties containing, among others, lithium (Tansim-100%), cobalt (Fabre-100%), nickel-cobalt-PGEs (Vulcain-100%) and rare earths (Kipawa-72%).
Matamec’s main focus is the development of the Kipawa Heavy Rare Earth Elements (HREE) deposit, a joint venture owned at 72% by Matamec and 28% by Ressources Québec (acting as agent of the Government of Québec); Toyota Tsusho Corp. (Nagoya, Japan) holds a 10% royalty on net profit in the deposit.
In addition to the activities in energy sector, Matamec is exploring for gold in 6 properties, with the Matheson JV (50%) and Matheson-Pelangio (100%) properties located east of the Hoyle Pond Mine in Timmins, ON; the Valmont (100%) property located in Québec; as well as three in the Québec Plan Nord region in similar geological settings as established gold-producing mines. These include two in proximity to the Éléonore Mine (in James Bay, QC): Sakami (50%) and Opinaca Gold West (100%), and Casa-Detour (100%) located east of the Burntbush Detour Gold Corp. project.
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.
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.