Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT - News) announces the closing
on December 16, 2010 of a brokered private placement led by Industrial
Alliance Securities Inc. and assisted by Versant Partners Inc. (the
"Agents") for total gross proceeds of $5,750,000 (the
"Placement"). Under the terms of this Placement, Matamec issued a total of 2,300,000 flow-through shares
(the "Flow-Through Shares") at a price of $0.50 per Flow-Through
Share and 11,500,00 units (the "Units") at a price of $0.40 per
Unit. Each unit consists of one common share and one-half warrant (each whole
warrant being a "Warrant"), each Warrant entitling the holder
thereof the right to purchase one common share of Matamec
at the price of $0.50 per share for a period of 18 months expiring June 16,
2012.
Under the Placement, Matamec
paid the Agents a cash commission of $401,250 and issued a total of 828,000
non-transferable broker warrants (the "Broker Warrants"). Each
Broker Warrant entitles the holder thereof the right to purchase one common
share of Matamec at a price of $0.40 per share for
a period of 18 months expiring June 16, 2012. The securities issued under
this Placement will be subject to a four-month and one day hold period
expiring on April 17, 2011.
The proceeds of the offering will be
used by the Company for exploration work on the Zeus, Vulcain
and Lesperance-Wachigabau properties as well as to
the company's' working capital. The majority of the exploration work will be
dedicated to the rare earths-yttrium-zirconium-niobium-tantalum Zeus
property.
Besides definition drilling of the heavy
rare earths-yttrium-zirconium Kipawa deposit
already outlined, exploration drilling will be conducted along the deposit's
lateral extensions as well as at depth. A portion of Zeus' budget will be
allocated for defining the other showings identified elsewhere on the property
as well as mapping and prospecting the entire Kipawa
alkaline complex in order to find other mineralization similar to the
deposit. Furthermore, this budget will contribute to accelerate the
metallurgical testing to finalize the process diagram that will permit the
completion of the preliminary economic assessment (PEA) study.
About Matamec
Other than its focus on the development
of the Kipawa deposit and exploration for other
showings of rare earths-yttrium-zirconium-niobium-tantalum on its Zeus
property, Matamec's exploration strategy is to
discover gold deposits, base metals and platinum group, as well as rare
metals.
For gold, the company explores in the
prolific mining camp of Timmins, Ontario, of which the main target is the
Matheson JV with Goldcorp Canada Ltd. and Goldcorp Inc.
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.
"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."
Contact:
Andre Gauthier
Matamec Explorations Inc.
President
514-844-5252
info@matamec.com
www.matamec.com |