Geomega Resources Inc. (TSX-V: GMA) is a rare earths element (“REE”) company that is gaining the attention lately of investors and governments alike. Through its wholly owned subsidiary, Innord Inc., GMA plans on utilizing its technological arm Innord located in St-Bruno-de-Montarville, Québec to recycle and refine magnet waste through a proprietary separation process known as Innord Separation of Rare Earths (ISR).
In late February, Geomega entered into an agreement with Jobmaster Magnets to facilitate the recycling program of rare earth magnets in Canada and internationally. GMA and Jobmasters Magnets will collaborate with end users and traditional recyclers to receive magnet waste for the recycling process using GMA’s proprietary ISR separation technology. CEO of Geomega Kiril Mugerman stated “Jobmaster Magnets’ clients, in Canada and abroad, will be able to benefit from having their magnets recycled in a clean and sustainable way right here in Canada while preserving this critical resource from going to the land fills.” This partnership will enable GMA to begin its path in its magnet recycling program in Canada.
On February 7th 2020, GMA announced that the company had secured debt financing of CAD $1,720,000 from Investissment Québec with the Québec government acting as an agent through the ESSOR program of the Ministry of Economy and Innovation of Quebec. The financing of $1.7M from the Québec Government will enable GMA to proceed with building the rare earth magnet recycling demonstration facility in St-Bruno-de-Montarville, Québec.
The rare earth separation facility is strategically located 30 minuets from Montréal and 6 hours from major north American cities such as Toronto, Boston and New York. Innord’s facility is also located near the St Hubert and Trudeau airport and the port of Montréal. Innord’s proximity to international port hubs will facilitate GMA to ship its refined magnet waste to manufacturers around the globe
Management and insiders of GMA own 4% of company stock and most notably is the ownership of 9% that is held by Québec Institution Funds such as Investissment Québec. It isn’t very often that we see small cap stocks that are owned by provincial investment institutions like IQ, and we believe that the involvement of the provincial funds adds a level of confidence when investing in GMA.
Also noteworthy, is that GMA currently owns 16.8 million shares of a mineral exploration company, Kintavar Exploration Inc. (TSX-V: KTR). GMA’s ownership of KTR represents approximately 19% of the total shares outstanding of Kintavar Exploration. As shares of KTR closed at $.09 cents on April 15th, this would value GMA’s ownership of KTR to approximately $1,500,000.
Volume on shares of GMA have seen a surge as of late as volume increased 204% on April 15th with a total of 435,000 shares traded, when compared to the trading average of ~133,000. Shares of GMA are breaking out the upper Bollinger band on increased volume and is looking like shares of GMA may surpass the 200 SMA.
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