Geomega receives $3 million loan to build rare earth magnet recycling demonstration plant in Quebec
Geomega, a developer of clean technologies for the mining, refining and recycling of rare earths, has secured additional debt financing of $1,326,000, which will be added to the funds required to build the rare earth magnet recycling demonstration plant in Saint-Bruno-de-Montarville, Quebec.
Project financing will be provided by Investissement Quebec, who will be acting as agent on behalf of the Quebec Government to secure funding for the project.
The amount is in addition to the first tranche amount of $1,720,000 that was announced on February 7, 2020. The debt financing aggregate amount will now total $3,046,000 and will have the same favorable terms as the first tranche, including the fact that the debt is non-interest bearing. The increased cost results from internal evaluations by the corporation based on the completed engineering work and adjusts for delays, associated with restrictions imposed by the COVID pandemic and engineering work, and higher costs of engineering and construction.
The proposed use of funds will be towards the purchase of equipment, as well as engineering and construction of the demonstration plant.
"The Quebec Government is working hard to help establish clean, and innovative production of the critical metals that will simultaneously create jobs and produce materials needed for the industries of tomorrow. Its commitment to transformation and recycling of rare earth elements will help attract further downstream industries and establish a clean and sustainable rare earths refining industry in Quebec. With this funding portion now complete, we are looking forward to the completion of pilot testing which we began in August 2020 and then proceed to finalize engineering and begin construction," commented Kiril Mugerman, President & CEO of Geomega.
"This comprehensive investment by our government is intended to encourage the development of a green economy. This is a major aspect of the Geomega project. Also, recycling rare earths elements is an avenue for the enhancement and development of critical and strategic minerals in Quebec. With technologies and the energy transition, demand is strong for these minerals," said Jonatan Julien, Minister of Energy and Natural Resources.