Matamec Reports Financial Results for the Third Quarter
December 3, 2012 (Source Marketwire) — Matamec Explorations Inc. (“Matamec” or the “Company”) (TSX VENTURE:MAT)(OTCQX:MHREF) announced today that it has filed its Unaudited Condensed Consolidated Financial Statements and the related Management’s Discussion and Analysis (“MD&A”) for the quarter ended September 30, 2012 on the System for Electronic Document Analysis and Retrieval (“SEDAR“). Copies of these documents can be found on the SEDAR website at www.sedar.com.
“In the third quarter we reported our first net income of $5.6 million as a result of our Joint Venture Agreement with TRECan. We believe that this agreement continues to provide Matamec with a strong vote of confidence in both the potential of the Kipawa project and the management of Matamec. We have developed an excellent working relationship with TRECan and continue to work closely together with the objective of becoming a quality low-cost producer of rare earths in Canada,” said Andre Gauthier, President and CEO of Matamec Explorations Inc.
Operational Highlights for Q3-2012:
- The Company recorded its first net income of $5,551,900 or $0.047 per share, from a gain on disposal of the Kipawa deposit related to accounting of the Kipawa Joint Venture agreement with TRECan;
- Completed 16,158 metres definition drilling campaign on the Kipawa HREE deposit started in early May 2012 to increase the quality of the resources and reserves;
- Discover new HREE showings on Zeus : Certitude Nord, Makwa and Pakwa ;
- Completed in October, a drilling campaign of 15 short holes on the PS Zone, a structure situated at two kilometers South-East of the Kipawa deposit. Results are pending;
- From May to July 2012, SGS Minerals Service (Lakefield, Ontario) operated the mineral processing and hydrometallurgical pilot plants for the Kipawa HREE deposit;
- A Memorandum of Understanding was signed on July 6, 2012, with the Algonquin communities of Eagle Village First Nation and Wolf Lake First Nation concerning the Zeus property, including the Kipawa HREE deposit, and a Consultation and Exploration Protocol is currently being discussed;
- Continued regional community meetings, including harmonization roundtables and follow-up;
- Continued work on the Definitive Feasibility Study for the Kipawa HREE deposit in which results are expected in the second quarter of 2013. The activities for the last quarter were focused on laboratory test works and optimization of the ore process flowsheet;
- Initiated an Environmental and Social Impact Assessment for the Kipawa project by the firm Golder & Ass. Which is currently focused on data collection in the field to consolidate the baseline study and to confirm infrastructure locations for a potential mining operation;
- On October 23, 2012, the Board of Directors nominated Mr. Raynald Vezina, as an independent director; and
- On November 28, 2012, Mr. Marcel Bergeron as CFO and Secretary-Treasurer replacing Mr. Laval St-Gelais who held this position for more than seven years.
Granting of Stock Options
At the most recent meeting, the Board of Directors decided to grant stock options to six of the Company’s directors and officers, and to one employee.
All stock options, totalling 620,000, were granted at an exercise price of $0.17 per share, for a period of five years. These options, as well as the terms and conditions of their exercise, are governed by the Company’s Stock Option Plan.
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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.
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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