Geomega shares rise 23% on financing news
Geomega Resources Inc. [GMA-TSXV, GOMRF-OTC] shares rose sharply Wednesday after the company announced the closing of a $1.04 million non-brokered private placement with Michael Gentile, and his appointment as a strategic advisor to the company.
Geomega is a developer of clean technologies for the mining, refining and recycling of rare earths and other critical materials.
On Wednesday is share price jumped 22.9% or $0.055 to 29.5 cents on volume of 745,360. The shares are currently trading in a 52-week range of 53 cents and 22.5 cents.
Gentile is considered one of the leading strategic investors in the junior mining sector, owning significant positions in over 15 small-cap mining companies. He is currently a strategic advisor to Arizona Metals Corp. [AMC-TSXV], and a director of Northern Superior Resources Inc. [SUP-TSXV, NSUPF-OTCQB], Roscan Gold Corp. [ROSI-TSXV], Radisson Mining Resources Inc. [RDS-TSXV, RMRDF-OTC], and Solstice Gold Corp. [SGC-TSXV].
He recently co-founded Bastion Asset Management, an investment management firm based out of Montreal, Quebec and was previously a Senior Portfolio Manager with Formula Growth Ltd.
As a result of the offering, the proposed grant of options, combined with the securities owned or indirectly controlled by Gentile prior to the offering, he will now hold a 9.9% stake in the outstanding shares of the company on a partially diluted basis.
“Furthermore, following the expansion of the corporation activities into other metals and streams, the scope of the patent ownership and royalty agreement with Dr. Pouya Hajiani, Geomega’s Chief Techology Officer, has been updated.
“I have followed Geomega closely for several years and they have done a tremendous job developing proprietary technologies that are looking to solve some of the major issues facing the global economy and environment going forward,” Gentile said.
“Namely increasing the efficiencies of the extraction process and supply of critical EV metals and rare earths in a manner that can have a major positive impact on the environmental footprint of these crucial projects,” he said.
“Geomega’s technologies are targeting large and open-ended market opportunities and after years of research and development are nearing the critical phase of commercialization potential which can have a dramatic impact on the valuation of Geomega going forward.”
Gentile went on to say that the Geomega story is not widely known or understood by investors. He said he hopes that through is involvement as a top shareholder and strategic advisor to the company, he can help Geomega to gain the exposure he believes it deserves in the global investment community.
The offering consists of 4.35 million units priced at 24 cents per unit. Each unit consists of one common share and one full share purchase warrant. Each warrant entitles the holder to acquire one additional share for 32 cents until the date that is 36 months after the offering closes.
Gentile has also been granted 1.4 million stock options at an exercise price of 24 cents per share for two years in accordance with the terms of the company’s stock option plan.