Matamec Signs a Termination and Release Agreement with TRECan in the HREE Kipawa Deposit
September 19, 2014 (Source: Marketwired) — Matamec Explorations Inc. (“Matamec” or the “Company”) (TSX VENTURE:MAT)(OTCQX:MHREF) announced today the signature of a Termination and Release Agreement between the Company and Toyotsu Rare Earth, Inc. (TRECan) in the HREE Kipawa Deposit. Upon signing this agreement, Matamec will pay CAD$280,000 to TRECan and TRECan will convert its 49% interest in the HREE Kipawa Deposit into a 10% NPI Royalty. Now, Matamec will own 100% interest of the HREE Kipawa Deposit.
Matamec and TRECan JVA on the HREE Kipawa Deposit
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Matamec and TREcan signed a Joint Venture Agreement (“JVA”) on July 11, 2012 for the HREE Kipawa Deposit. Since the signature of the JVA, TRECan bought 49% interest in the Deposit for $16M. Matamec funded all the work related to the feasibility study with the $16M. This study was completed and filed on SEDAR on October 14, 2013.
The JVA was signed with the option that after the completion of the Feasibility Study, if TRECan did not want to participate in the next phase of the development of the HREE Kipawa Deposit, it could convert its 49% interest in a 10% NPI Royalty.
TRECan took the corporate decision to convert its 49% interest into a 10% NPI Royalty.. Both parties agreed to sign a Termination and Release Agreement by which Matamec will pay to TRECan the agreed amount in cash before November 19th, 2014 and TRECan will convert its 49% interest into a 10% NPI Royalty. The NPI Royalty is described in Annex D of the JVA filed on SEDAR on July 23, 2012.
“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.”
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>