Geomega Secures $1.35 Million Loan for Expansion
News related to:Geomega Resources Inc · 1 min read
Geomega Resources Inc., based in Montreal, Quebec, has secured a $1.35 million non-dilutive loan to support the expansion of its Saint-Hubert operations. The loan, arranged with an arm's length private lender, will fund the development and commissioning of a demonstration plant, as well as the construction of new laboratory and office space. This financing is part of the company's broader strategy to advance its research and development (R&D) initiatives and commercialization activities.
According to Mathieu Bourdeau, Chief Financial Officer of Geomega, the loan will help the company accelerate access to refundable R&D tax credits.
The loan has a two-year term and bears interest at a rate of 10.5% per annum, with interest payable monthly. A portion of the principal will be repaid as the related tax credits are received, with the remaining balance due at maturity on September 14, 2028. A 2% administrative fee, representing $27,000, was deducted at closing, resulting in net proceeds to Geomega of $1.323 million. The loan is secured by certain movable assets of the Corporation and its wholly owned subsidiary, Innord Inc.
Geomega Resources Inc. develops technologies for the extraction, separation, and recovery of rare earth elements and other critical metals from industrial and end-of-life feedstocks. The company's technology platforms include rare earth magnet recycling, bauxite residue valorization, and sulphide-tailings processing. The company's strategy is to progressively de-risk its technologies through laboratory, pilot, and demonstration scale development and to pursue commercial deployment with industry participants in the relevant value chains.
The loan is part of Geomega's efforts to support its ongoing R&D activities and advance its technology platforms.
The loan is not a security and the principal amount is not convertible into any securities of Geomega. The company's next steps will involve using the funds to advance its technology development and commercialization efforts, with the ultimate goal of reducing environmental impacts and supporting more circular materials supply chains.