Matamec Receives Third Payment from Toyotsu Rare Earth Canada
December 4, 2012 (Source: Marketwire) — 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 Network”.
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 HREE deposit.
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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 property.
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 Lesperance/Wachigabau property.
“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.”
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