Geomega gets backing for rare earths recycling project
Geomega Resources (TSX.V: GMA) has secured the required project financing to build the rare earths magnet recycling demonstration plant in St-Bruno-de-Montarville, Quebec.
Investissement Quebec, acting as agent of the Quebec government, will provide C$1.72 million in debt financing to Geomega based on a project evaluated at C$3.2 million including capital costs and working capital. The debt is repayable over 72 months starting from 24 months following the first withdrawal of the funds.
The proposed use of funds will be towards the purchase of equipment, engineering and construction of the demonstration plant.
“Geomega’s project is part of Quebec’s vision for green economy,” said Pierre Fitzgibbon, Minister of the Economy and Innovation and the Minister responsible for the Lanaudière region.
“Rare earths are used in new technologies, such as smartphones and electric motors, and the demand for these metals is constantly increasing. Rare earths production within the principles of circular economy is a major asset for Quebec and will help to further strengthen our position as a leader in the electrification of transportation,” Fitzgibbon said.
Geomega has developed a proprietary ISR Technology that recycles rare earth elements with focus on the permanent magnet industry, and produces four high-demand rare earth elements (Nd, Pr, Tb, Dy). The company is targeting 2020 for initial production from its demonstration plant to supply these minerals to North America and other parts of the world.
Shares of Geomega jumped more than 11% at Friday’s market open. The company has a market capitalization of C$19.2 million.