Geomega Announces $1.35 Million Non-Dilutive Loan Financing
Geomega arranges a $1.35 million, non-convertible secured loan to fund facility expansion and better match cash flow with R&D tax credits.
Rhea-AI Summary
Geomega Resources (GOMRF) has secured a non-dilutive, $1.35 million secured loan to support expansion of its Saint-Hubert operations and R&D activities.
The loan from an arm's length private lender is secured by certain movable assets of Geomega and subsidiary Innord, including refundable R&D tax credits. It carries a two-year term with interest of 10.5% per annum, payable monthly, and matures on September 14, 2028. A 2% administrative fee of $27,000 was deducted at closing, resulting in net proceeds of $1.323 million. Principal will be repaid as related tax credits are received, with the remaining balance due at maturity, and the loan is repayable without penalty after six months. The loan is not a security and is not convertible into Geomega shares.
Positive
- $1.35 million secured loan obtained to fund Saint-Hubert expansion and R&D
- Non-dilutive structure with loan explicitly not convertible into Geomega securities
- $1.323 million net cash after a 2% ($27,000) administrative fee
- Repayment aligned with R&D tax credits, potentially smoothing working capital needs
- Prepayment flexibility as the loan can be repaid without penalty after six months
Negative
- 10.5% annual interest rate increases financing costs versus lower-cost capital
- Loan secured by movable assets and refundable R&D tax credits, encumbering collateral
- 2% administrative fee ($27,000) reduces gross proceeds available to the company
AI-generated analysis. How Rhea-AI works. Not financial advice.
Montreal, Quebec--(Newsfile Corp. - September 16, 2026) - Geomega Resources Inc. (TSXV: GMA) ("Geomega" or the "Corporation") is pleased to announce that it has entered into a secured loan agreement for a principal amount of
The Loan financing was arranged with an arm's length private lender with whom Geomega has an established commercial relationship. The net Loan proceeds will support the expansion of the Corporation's Saint-Hubert operations, including new laboratory and office space and the development and commissioning of its demonstration plant, while advancing its broader R&D and commercialization activities.
The Corporation is complementing its previously announced government-funded programs with financing solutions more closely aligned with the recurring R&D expenditures. This Loan accelerates Geomega's access to refundable R&D tax credits, reducing the timing gap between eligible expenditures and receipt of the related tax credits, thereby improving working capital management.
The Loan is secured by certain movable assets of the Corporation and Innord Inc., Geomega's wholly owned subsidiary, including refundable R&D tax credits.
The Loan has a two-year term and bears interest at a rate of
"This financing aligns our funding structure more closely with the recurring R&D expenditures generated by our development programs," commented Mathieu Bourdeau, CFO of Geomega. "By accelerating access to the value of refundable tax credits, it helps us maintain momentum across our technology-development initiatives and manage working capital more efficiently as certain government-funded programs are completed."
About Geomega (www.geomega.ca)
Geomega develops technologies for the extraction, separation and recovery of rare earth elements and other critical metals from industrial and end-of-life feedstocks. The Corporation's technology platforms include rare earth magnet recycling, bauxite residue valorization and sulphide-tailings processing.
Geomega's strategy is to progressively de-risk its technologies through laboratory, pilot and demonstration scale development and to pursue commercial deployment with industry participants in the relevant value chains. Across its technology platforms, Geomega seeks to recover valuable metals and recycle key process reagents, with the objective of reducing environmental impacts and supporting more circular materials supply chains.
Geomega also owns the Montviel rare earth carbonatite deposit and holds more than 16.8M shares of Auriginal Mining Corp. (AUME.V), a mineral exploration company focused on copper and gold projects in Quebec, Canada.
For further information, please contact:
| Kiril Mugerman | |
| President and CEO | |
| Geomega | |
| 514-223-1449 ext.3 | |
| kmugerman@geomega.ca | |
| X: @Geomega_REE |
Cautions Regarding Forward-Looking Statements
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.
This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding future plans, costs, objectives or performance of the Corporation, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" "target" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including as regards the commercialization of any of the technology referred to above, or if any of them do so, what benefits the Corporation will derive. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Corporation's control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in the Corporation's annual management's discussion and analysis for the fiscal year ended May 31, 2025, which is available on SEDAR+ at www.sedarplus.ca; they could cause actual events or results to differ materially from those projected in any forward-looking statements. The Corporation does not intend, nor does the Corporation undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/314512
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How will Geomega use the proceeds from the $1.35 million loan?
Net proceeds of approximately $1.323 million will support the expansion of Geomega's Saint-Hubert operations, including new laboratory and office space and the development and commissioning of its demonstration plant. The funds will also help advance broader R&D and commercialization activities and complement existing government-funded programs.
What are the key terms and repayment features of Geomega's new loan?
The loan has a two-year term, bears interest at 10.5% per annum with interest payable monthly, and matures on September 14, 2028. A portion of principal will be repaid as related refundable R&D tax credits are received, with the remaining balance due at maturity. The loan may be repaid without penalty after the first six months.
What collateral secures Geomega's new loan?
The loan is secured by certain movable assets of Geomega and its wholly owned subsidiary Innord, including refundable R&D tax credits.