MATAMEC REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER
Matamec Explorations Inc. has filed its unaudited condensed consolidated financial statements and the related management's discussion and analysis (MD&A) for the quarter ended Sept. 30, 2012, on the System for Electronic Document Analysis and Retrieval (SEDAR). Copies of these documents can be found on the SEDAR website.
"In the third quarter we reported our first net income of $5.6-million as a result of our joint venture agreement with TRECan. We believe that this agreement continues to provide Matamec with a strong vote of confidence in both the potential of the Kipawa project and the management of Matamec. We have developed an excellent working relationship with TRECan and continue to work closely together with the objective of becoming a quality low-cost producer of rare earths in Canada," said Andre Gauthier, president and chief executive officer of Matamec Explorations.
Operational highlights for third quarter 2012
- The company recorded its first net income of $5,551,900 or 4.7 cents per share, from a gain on disposal of the Kipawa deposit related to accounting of the Kipawa joint venture agreement with TRECan.
- The company completed a 16,158-metre definition drilling campaign on the Kipawa HREE deposit started in early May, 2012, to increase the quality of the resources and reserves.
- The company discovered new HREE (heavy rate earth element) showings on Zeus: Certitude Nord, Makwa and Pakwa.
- The company completed in October a drilling campaign of 15 short holes on the PS zone, a structure situated at two kilometres southeast of the Kipawa deposit. Results are pending.
- From May to July, 2012, SGS Minerals Service (Lakefield, Ont.) operated the mineral processing and hydrometallurgical pilot plants for the Kipawa HREE deposit.
- A memorandum of understanding was signed on July 6, 2012, with the Algonquin communities of Eagle Village First Nation and Wolf Lake First Nation concerning the Zeus property, including the Kipawa HREE deposit, and a consultation and exploration protocol is currently being discussed.
- The company continued regional community meetings, including harmonization round tables and follow-up.
- The company continued work on the definitive feasibility study for the Kipawa HREE deposit in which results are expected in the second quarter of 2013. The activities for the last quarter were focused on laboratory testwork and optimization of the ore process flowsheet.
- The company initiated an environmental and social impact assessment for the Kipawa project by the firm Golder & Associates, which is currently focused on data collection in the field to consolidate the baseline study and to confirm infrastructure locations for a potential mining operation.
- On Oct. 23, 2012, the board of directors nominated Raynald Vezina, as an independent director.
- On Nov. 28, 2012, the company appointed Marcel Bergeron as chief financial officer and secretary-treasurer replacing Laval St-Gelais who held this position for more than seven years.
Granting of stock options
At the most recent meeting, the board of directors decided to grant stock options to six of the company's directors and officers, and to one employee.
All stock options, totalling 620,000, were granted at an exercise price of 17 cents per share, for a period of five years. These options, as well as the terms and conditions of their exercise, are governed by the company's stock option plan.