Matamec Explorations inc.

Matamec Explorations inc.

March 12, 2012 08:00 ET

Toyota Tsusho Gives Matamec $1.5M CAD and the MOU is Binding on the Parties

MONTREAL, QUEBEC--(Marketwire - March 12, 2012) - Matamec Explorations Inc. ("Matamec") (TSX VENTURE:MAT) is pleased to announce that Toyota Tsusho Corp. ("TTC") and the Company signed an amendment to the memorandum of understanding ("the MOU") dated on December 7, 2011, whereby the MOU is binding on the parties since February 28, 2012. The parties have agreed that the due diligence period begins February 28, 2012. Also, the Company has received $1.5M CAD, as provided for in the MOU, for reimbursement of Matamec's expenditures related to the heavy rare earths-yttrium-zirconium Kipawa deposit.

With this payment, the parties have agreed that they will have until June 27, 2012 for TTC to make a decision whether or not to provide independent feasibility study ("FS") expenditures with respect to the Kipawa deposit. With TTC's decision to proceed with the FS, TTC will provide the agreed substantial amount to support the completion of FS and the parties have agreed on options for TTC to acquire up to a 49% interest in the Kipawa deposit. TTC shall contribute this substantial amount based on up to 49% of Matamec's average market capitalization during the 90 day period ending November 30, 2011. The Kipawa deposit covers an area of more than 1,000 hectares (see green area on figure 1).

As for the Zeus property, which covers over 19,000 hectares (see red area outlined on figure 1), the parties have agreed to negotiate in good faith the participation of TTC in the various discoveries made outside the Kipawa deposit. The parties have agreed that they will sign specific agreements on discoveries such as Surprise and Certitude (see March 1 and 5, 2012 press releases).

Andre Gauthier, President and CEO of Matamec, says: "This is a very significant development for all parties. TTC has shown its interest in the Kipawa deposit by providing an initial amount of money and binding the parties on the MOU. We have been working together closely, on a daily basis, to develop the project. The negotiations for the JV, off-take and financial agreements are on schedule. With TTC's technical and financial help, we have reduced significantly the risk associated with the development of the Kipawa deposit."

About Matamec

Matamec Explorations Inc. is a junior mining exploration company whose main focus is in developing the heavy rare earths Kipawa deposit and exploring more than 35 km of strike length in the Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property.

The Company is also exploring for gold, base metals and platinum group metals. Its gold portfolio includes the Matheson JV property located along strike and in close proximity to the Hoyle Pond Mine in the prolific mining camp of Timmins, Ontario.

In Quebec, the Company is exploring for lithium and tantalum on its Tansim property and for precious and base metals on its Sakami, Valmont and Vulcain properties. As well, it is exploring for gold together with Northern Superior Resources Inc. on the Lesperance/Wachigabau property.

Figure 1. Matamec: Kipawa deposit and Zeus property areas :

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Matamec Explorations Inc.
    Andre Gauthier
    (514) 844-5252
    514-844-0550 (FAX)

    Matamec Explorations Inc.
    Caroline Wilson (P.Geo.)
    Director of Investor Relations
    (647) 938-4080