MONTREAL, QUEBEC – Matamec Explorations inc . (“Matamec” or the ” Company “) (TSX VENTURE: MAT) (OTCQB: MHREF) is pleased to announce that it has entered into a sale and purchase agreement with Metalla Royalty & Streaming Ltd. (“Metalla”) for the sale of its royalties on the Hoyle-Matheson Royalties and Montclerg properties. Both properties are located in the world class gold camp of Timmins, an area that has produced more than 70 million ounces of gold.
The purchase price payable for royalties consists of $ 500,000 in cash and two million (2,000,000) shares of Metalla valued at $ 0.50 per share. Matamec will also receive warrants to purchase another million (1,000,000) shares of Metalla at $ 0.75 per share for a period of two years. Shares and warrants may not be exchanged for 12 months from the date of closing. The closing of the transaction is subject to certain closing conditions.
“The proceeds from the sale of these royalties will enhance the value of Matamec to its shareholders,” said Andre Gauthier, President and Chief Executive Officer of Matamec. “At the same time, it allows us to concentrate our efforts on exploration – for gold in other Matamec gold properties, as well as for metals related to energy and technology in properties held in its Energy portfolio.”
Matamec Explorations Inc., located in Montreal, Quebec, is a junior mining exploration company with two main development activities: gold, and essential elements for energy-related technologies, with (100% owned by Fabre), nickel (100% owned Vulcan), and rare earths (Kipawa-owned at 72%) .
The Company’s principal activity is the development of the Kipawa heavy rare earth element deposit, jointly with Ressources Quebec, 72% by Matamec and 28% by RQ (as agent for the Government of Quebec ), And Toyota Tsusho Corp. (Nagoya, Japan) with a royalty of 10% on the net profit in the deposit.
In addition to energy activities, the Company is also exploring for gold on properties located in the eastern sector of the Hoyle Pond mine in Timmins, Ontario, as well as in four properties located in the area covered by The Plan Nord du Quebec. These include the Sakami (50% owned) and Opinaca Gold West (100% owned) properties in a geological context similar to the A�leonore mine in James Bay, Quebec.
Source: Matamec Explorations inc.