GéoMégA Resources Inc.
TSX VENTURE : GMA

GéoMégA Resources Inc.

July 08, 2011 11:52 ET

GéoMégA Closes $5 Million Private Placement

MONTREAL, QUEBEC--(Marketwire - July 8, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Geomega Resources Inc. (GéoMégA or the "Company") (TSX VENTURE:GMA) announces the closing of the $5 million private placement (the "Offering") previously announced by the Company on June 30, 2011.

The Offering was completed by a syndicate of agents led by Mackie Research Capital Corporation, and included Global Hunter Securities LLC, Jacob Securities Inc. and Versant Partners Inc. (collectively, the "Agents")

Pursuant to the Offering, 2,127,659 units at a price of $2.35 (the "Units") were issued for total gross proceeds of $4,999,999. Each Unit consists of one common share and one common share purchase warrant (the "Warrants"). Warrant is exercisable at any time for one common share at a price of $2.85 until July 8, 2013.

In connection with the Offering, the Company paid the Agents a fee of $328,781 and issued to the Agents 134,750 compensation options, each compensation option entitling the holder thereof to acquire Unit at a price of $2.35 per Unit until July 8, 2013.

All securities pursuant to the Offering are subject to a four (4) month and one-day hold period.

Proceeds of the Offering will be used to finance the Phase 2 drill program, initial resource calculation in compliance with National Instrument 43-101 reporting standards, metallurgical tests and preliminary economic assessment of the Company's Montviel REE project in Quebec.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

ABOUT GÉOMÉGA

GéoMégA, which owns 100% of the Montviel property, is a Québec mining exploration company focusing on finding economically viable deposits of elements needed by clean technologies. GéoMégA is committed to meeting the highest mining industry standards and distinguishing itself with its expertise, know-how and its support and respect for local communities and the environment.

GéoMégA currently has 21,735,399 common shares outstanding and is well funded.

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