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Matamec (TSXV:MAT) announced that it has signed a sale and purchase agreement and a joint venture agreement with Toyotsu Rare Earth Canada, Inc. in connection with the Kipawa HREE Deposit. The two companies intend to continue collaborating on the Kipawa HREE deposit in order to complete a feasibility study.
Matamec Explorations Inc. (TSXV:MAT) announced that it has signed a sale and purchase agreement and a joint venture agreement with Toyotsu Rare Earth Canada, Inc. in connection with the Kipawa HREE Deposit. The two companies intend to continue collaborating on the Kipawa HREE deposit in order to complete a feasibility study.
As quoted in the press release:
Under the SPA, TRECan acquired from Matamec an undivided interest of 49% in the Kipawa HREE Deposit for a total consideration not exceeding $16,000,816 CAD which will be used to fund the expenses related to the feasibility study and which will be payable as follows:
- An amount of $8,500,000 CAD paid at closing; and
- An amount not exceeding $7,500,816 CAD (the “Second Sale Purchase Price“) to be paid by TRECan upon receipt of cash calls in accordance with the joint venture agreement (after the initial $8,500,000 CAD has been spent).
Andre Gauthier, President of Matamec, commented:
The present agreement marks a major milestone for Matamec. It allows an independent feasibility study to be completed leading to a production decision by Q2 2013. TRECan is a reputable partner giving Matamec both the financial and technical support to allow it to catapult to the forefront in the race to production of HREEs outside of China.
Click here to read the full press release.
