Geomega Resources and Rio Tinto Extend Collaboration on Bauxite Residues
MONTREAL, April 25, 2022 - Geomega Resources Inc. ("Geomega" or the "Corporation") (TSX.V: GMA) (OTC: GOMRF), a developer of clean technologies for the mining, refining, and recycling of rare earths and other critical materials, is pleased to announce that Innord Inc., its wholly owned subsidiary, has signed a Term Sheet with Rio Tinto to enter into a Development Agreement for Bauxite Residues Iron Phase Product. As part of the agreement, Rio Tinto will provide $1M in funding for Innord to complete the required proof of concept work and the subsequent small scale locked cycle pilot plant at its Boucherville facilities. Following the announcement of the funding for a $4M pilot plant and feasibility study of a sustainable and complete valorization of bauxite residues (see announcement on March 31, 2022), Rio Tinto and Innord have agreed to begin evaluating in parallel various opportunities to monetize the iron compounds produced by Innord's Bauxite Residues Technology (IBRT). As part of the project, over the next 12 months, Innord has committed to develop and test an extension technology to IBRT to produce the desired product that will then be evaluated by Rio Tinto.
The Intellectual property developed from this project extension will be owned by Rio Tinto who is fully funding the project. Innord will receive a royalty payment for the underlying base technology (IBRT) upon commercialization of the technology and any production of commercial products. Details of the agreement between Geomega and Rio Tinto, including the royalty level, will remain confidential.
"We are excited to further extend our cooperation with Rio Tinto on bauxite residues. Iron is the largest component of bauxite residues, and we believe that this stream holds the keys to a successful implementation of Innord's complete and sustainable valorization of said residues. This project will evaluate the added value transformation of the iron compound produced using IBRT, creating potentially new and more profitable markets for this product. A successful project has the potential to increase the commercial viability of IBRT and contribute to its expedited commercialization." commented Kiril Mugerman, President & CEO of Geomega and Innord.
The announced $1M of additional funding from Rio Tinto is non-dilutive to both Geomega and Innord. The project will be starting immediately, and the definitive development agreement is expected to be finalized later in 2022.
About the technology for Bauxite Residues
Bauxite residue is a by-product that is being generated during refining of alumina using the Bayer process. Innord's technology for BR valorization builds on the processes originally developed for rare earth (REE) magnet recycling and extraction of REE from Montviel ore. The technology offers high reduction of waste volume, the recovery of valuable metal concentrates (Fe, Al, REE, Sc, Ti) and effluents minimization by recycling main reagents. For more details see the Corporation's announcement on May 25, 2021 and the BR section on our website.
About Geomega (www.geomega.ca)
Geomega develops innovative technologies for extraction and separation of rare earth elements and other critical metals essential for a sustainable future. With a focus on renewable energies, vehicle electrification, automation and reduction in energy usage, rare earth magnets or neo-magnets (NdFeB) are at the center of all these technologies. Geomega's strategy revolves around gradually de-risking its innovative technology and delivering cashflow and return value to shareholders while working directly with the main players in these industries to recycle the magnets that power all those technologies.
As its technologies are demonstrated on larger scales, Geomega is committed to work with major partners to help extract value from mining feeds, tailings and other industrial residues which contain rare earths and other critical metals. Irrespective of the metal or the source, Geomega adopts a consistent approach to reduce the environmental impact and to contribute to lowering greenhouse gases emissions through recycling the major reagents in the process.
Geomega's core project is based around the ISR Technology (Innord's Separation of Rare Earths), a proprietary, low-cost, environmentally friendly way to tap into a C$1.5 billion global market to recycle magnet production waste and end of life magnets profitably and safely.
Geomega also owns the Montviel rare earth carbonatite deposit, the largest NI 43-101 bastnaesite resource estimate in North America and holds over 16.8M shares, representing approximately 14% of the issued and outstanding shares, of Kintavar Exploration Inc. (KTR.V), a mineral exploration company that is exploring for copper projects in Quebec, Canada.
About Rio Tinto
Rio Tinto is a mining and metals company operating in 35 countries around the world that produces the materials essential to human progress. It aims to help pioneer a more sustainable future, from partnering in the development of technology that can make the aluminum smelting process entirely free of direct GHG emissions, to providing the world with the materials it needs - such as copper and titanium - to build a new low-carbon economy and products like electric vehicles and smartphones.
For further information, please contact:
| Kiril Mugerman |
| President and CEO |
| Geomega |
| 450-641-5119 ext.5653 |
| kmugerman@geomega.ca Nancy Thompson Vorticom Public Relations 212-532-2208 nancyt@vorticom.com Twitter: @Geomega_REE |
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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, 2021, which is available on SEDAR at www.sedar.com; 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.
