Matamec Receives a Second Payment of 1.1M CAD from Toyotsu Rare Earth Canada
MONTREAL, QUEBEC--(Marketwire - Nov. 1, 2012) - Matamec Explorations Inc. ("Matamec" or the "Company") ( TSX VENTURE:MAT)(OTCQX:MHREF) is pleased to announce that the Company has received a second payment of 1,119,776 CAD from its Japanese partner Toyotsu Rare Earth Canada Inc. ("TRECan"), a subsidiary of Toyota-Tsusho Corp. ("TTC").
Matamec began discussions with TTC, a subsidiary of Toyota Motor Group, on January 25th, 2010, and both companies signed a Confidentiality Agreement on April 1st, 2010. After two years of negotiations, Matamec and TTC signed a Memorandum of Understanding ("MOU") on December 7th, 2011. Matamec received a payment of 1.5M CAD on February 2012 to bind the MOU with TTC.
With the signature of the Joint Venture Agreement ("JVA") by which TRECan can acquire 49% undivided interest in the Kipawa HREE Deposit, Matamec received 8.5M CAD for the first 25% undivided interest on July 18, 2012. To acquire the second 24% undivided interest, TRECan has to pay to Matamec a maximum amount of 7.5MCAD. The 1.1M CAD is the first of a number of successive payments in completion of the 7.5MCAD, but the second overall payment received from TRECan. Matamec will transfer the 24% undivided interest to TRECan when it will receive a cumulative maximum amount of 7.5M CAD.
With this payment, Matamec receives a cumulative amount of 9,619,776 CAD on a maximum 16M CAD for the feasibility study on the Kipawa HREE Deposit. The results of which are expected in the second quarter of 2013.
Andre Gauthier, president of Matamec, says that "the JVA has many tangibles, but also many valuable intangibles. For the tangibles, TRECan is a strategic partner and the JVA is only for the Kipawa HREE deposit. With the JVA signed July 2012 between TRECan (49%) and Matamec (51%), TRECan provided $16MCAD for a NI 43-101 independent bankable feasibility study. Matamec is operator of the JV. TRECan will sign an off-take agreement to buy 100% of a mixed rare earths concentrate and TRECan will arrange with Matamec the financing through to production".
The president adds that "for the intangibles, the JVA includes mutual collaboration to accelerate the development of the Kipawa HREE Deposit and technical assistance from the Worldwide Toyota Network (critical to fast track the project). This agreement secures a heavy REE supply for the production and marketing of hybrid vehicles".
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 V-P 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Matamec Explorations inc.
Andre Gauthier, President