GeoMegA Announces Pre-Development Agreement at Montviel with The Grand Council of the Crees (EI) and The Cree First Nation of Waswanipi
For immediate distribution
MONTREAL, October 20, 2011 – Geomega Resources Inc. (TSX.V: GMA) (“GéoMégA” or the “Company”) is pleased to announce the Company has signed a Pre-Development Agreement (« PDA ») for its Montviel Rare Earths Project with the Grand Council of the Crees (Eeyou Istchee) / Cree Regional Authority and the Cree First Nation of Waswanipi.
The PDA has been developed on the principle of mutual respect between the parties, and the interests of all stakeholders in seeing the establishment of a successful mining venture at Montviel. It provides for business and employment opportunities for the Crees during the period of pre-development activities leading up to a potential production decision at the project, the completion of a comprehensive Business and Employment Capacity Study to assess the full potential for Cree business and employment opportunities from an eventual Montviel Rare Earths Mine, and the creation of a joint communication strategy. In addition, the PDA provides for Cree assistance in the preparation of an Environmental and Social Impact Assessment for Montviel, and any other relevant environmental and social assessment studies. The PDA builds upon good faith dialogue between the parties, and contemplates the completion of a subsequent Social and Economic Participation Agreement.
« This agreement is the result of a collaboration that began in October 2010, a week after our IPO, while preparing for the commencement of Phase 1 drilling at Montviel. This significant milestone, achieved early in the development of Montviel, illustrates our dedication to Social and Environmental respect. Thanks to the collaboration of the Crees of Eeyou Istchee, in particular the W11B Tallyman and his family and the Cree First Nation of Waswanipi, Montviel promises to be one of the fastest developing rare earth project globally. In addition to providing for meaningful benefits to all stakeholders, this agreement confirms the support of involved parties in the pursuit of activities and studies necessary to enhance the value of our promising Montviel project. » stated Simon Britt, CEO of GéoMégA.
Chief Paul Gull from the Cree First Nation of Waswanipi stated: « Our community and the Council of the Cree First Nation of Waswanipi are eager to collaborate with the mineral exploration and mining industry. We recognize that this industry has a corporate social responsibility to follow in the footsteps of GéoMégA. The signing of this agreement ensures that there will be meaningful participation by our local members without sacrificing sustainability. It is an important step for all parties. »
Pursuant to the PDA, GéoMégA will issue 150,000 common shares to the Waswanipi Development Corporation. The issued securities are subject to regulatory approval and a four (4) month hold period.
Major discovery for Québec – 3 rd largest TREO deposit outside China (NI 43-101 or equivalent)
The initial NI 43-101 compliant resource calculation, released on September 29, 2011, totalled 183.9 million tons Indicated averaging 1.45% total rare earth oxides (TREO) in addition to 66.7 million tons Inferred averaging 1.46% TREO. Montviel has the potential to play a significant near term role in the clean technologies of the 21st century due to its proximity to infrastructure and available labour.
Rare earth elements are key components of the clean energy technologies and other high-technology applications. Major applications include hybrid/electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent lights and numerous metal alloys.
About GéoMégA (ressourcesgeomega.ca)
GéoMégA, which owns 100% of the Montviel Rare Earths/Niobium project, is a Québec mineral exploration company focused on finding economically viable deposits of Minor Metals in Québec. GéoMégA is committed to meeting Canadian mining industry standards and distinguishing itself with its expertise, know-how and its support and respect for local communities and the environment.
29,274,113 common shares of GéoMégA are currently issued and outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
/s/ « Simon Britt »
Chief Executive Officer
For more information contact:
President and CEO
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company’s filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.