Matamec announces agreement for the sale of its royalties in the Timmins Gold Camp to Metalla Royalty & Streaming Ltd.
Montréal, May 4, 2017 – Matamec Explorations Inc. (“Matamec” or the “Company”)
(TSX-V: MAT, OTC-QB: MHREF) is pleased to announce that it has entered into a binding sale and purchase agreement with Metalla Royalty & Streaming Ltd. (“Metalla”) for the sale of its royalties on the Hoyle-Matheson Royalties (HMR) Property and the Montclerg Property. Both properties are located in the world-class Timmins Gold Camp, an area that has produced more than 70 million ounces of gold from large deposits.
The purchase price payable 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 will also receive 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 the warrant shares cannot be traded 12 months from the closing date. The closing of the transaction is subject to certain customary closing conditions.
“The proceeds from the sale of these royalties will enhance Matamec’s value for its shareholders,” said André Gauthier, Matamec’s President and CEO. “At the same time, it allows us to focus our efforts on exploration – for gold at Matamec’s other gold properties, as well as for energy and technology-related metals at properties held in its Energy portfolio.”
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-owned at 100%), Cobalt (Fabre-100% owned), nickel (Vulcain-100% owned) and rare earths (Kipawa-72% owned by Matamec).
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, with properties located in the area of the Hoyle Pond Mine in Timmins, ON, as well as four in the Quebec 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%).
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.