MONTREAL, QUEBEC, Oct. 19, 2009 (Marketwire) --
MONTREAL, QUEBEC -- (Marketwire) -- 10/19/09 -- Matamec Explorations Inc. (The "Company" or "Matamec") (TSX VENTURE: MAT) announces that it has closed a non-brokered private placement for gross proceeds of $1,535,000 (the "Offering"). Among the list of subscribers to the Offering figure private investors, members of the Pro Group and institutional investors such as Sodemex II, Limited Partnership. The proceeds from the Offering will be used by the Company for general working capital and to start an extensive exploration program at the end of October on the Heavy Rare Earth's Kipawa deposit located on the Zeus property and described below.
The private placement consists of 8,527,555 units at a purchase price of $0.18 per unit for gross proceeds of $1,534,968. Each unit is comprised of one (1) common share and a half (1/2) warrant, each whole warrant entitling the holder to purchase one (1) common share at a price of $0.25 per share of the Company for a period of twelve (12) months following the closing date and thereafter at a price of $0.35 per share for an additional twelve (12) month period. The securities sold under the Offering have been issued pursuant to exemptions from the prospectus and registration requirements of applicable securities laws and are subject to a four month hold period from the closing date.
Zeus Property and Heavy Rare Earth's Kipawa Deposit Exploration Program Beginning Fall 2009
The 100% owned Zeus property is situated 160 km south-east of Rouyn-Noranda and 65 km east of Temiscaming (see figure 1: http://media3.marketwire.com/docs/Matamec_Figures_ENG_1019.pdf). Between 1985 and 1991, Unocal Canada Ltd. with its subsidiary Molycorp, Inc. explored the property and identified three (3) zones of the rare earth elements ("REE"), yttrium and zirconium (see figure 2: http://media3.marketwire.com/docs/Matamec_Figures_ENG_1019.pdf), known as the PB-PS Zones and the Kipawa Deposit (historical resources of 2.27 Mt @ 0.14% Y2O3 and 1.05% ZrO2). Please note that since the qualified person has not done sufficient work to classify the historical estimates as current mineral resources, the issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.
