Toyotsu Pays $1.6 Million to Matamec for Continued Execution of Kipawa Feasibility Study
Goal of Kipawa mine project is to supply heavy rare earths for the production and marketing of hybrid and electric vehicles
MONTREAL, QUEBEC--(Marketwire - Jan. 10, 2013) - Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) is pleased to announce that the Company has received $1.595 million CDN from its Japanese partner Toyotsu Rare Earth Canada Inc. ("TRECan"), a subsidiary of Toyota-Tsusho Corp. ("TTC"). The goal of the Kipawa mine project is to supply Toyotsu heavy rare earths ("HREE") for the production and marketing of hybrid and electric vehicles.
To date Matamec has received $12,155,019 CDN of the maximum $16M CDN for the completion of a definitive feasibility study on the Kipawa HREE deposit, which is expected in the second quarter of 2013.
"We are pleased with the continued progress in the execution of our feasibility study with the Kipawa mine project. The Company will provide in the near-term an update on the status of the feasibility study," said Andre Gauthier, President and CEO of Matamec Explorations. "The partnership with Toyotsu provides Matamec with the financial resources to continue in the execution of its long-term strategic plan to become a leading global rare earth company."
Under the terms of the Joint Venture Agreement ("JVA") by which TRECan can acquire 49% undivided interest in the Kipawa HREE Deposit, Matamec received $8.5M CDN for the first 25% undivided interest on July 18, 2012. To acquire the second 24% undivided interest, TRECan has to pay to Matamec a maximum amount of $7.5M CDN. The $1.595M CDN is the third of a number of successive payments in the completion of the $7.5M CDN, but the fourth overall payment received from TRECan. Matamec will transfer the 24% undivided interest to TRECan when it will receive a cumulative maximum amount of $7.5M CDN.