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Matamec Explorations Inc. today announced that it has received a second payment of CAD 1,119,776 (USD 1,120,778) from its Japanese partner Toyotsu Rare Earth Canada Inc. (TRECan), a subsidiary of Toyota Tsusho Corp. (TTC).
Matamec began discussions with TTC, a subsidiary of Toyota Motor Group, on January 25, 2010, and both companies signed a Confidentiality Agreement on April 1, 2010.
After two years of negotiations, Matamec and TTC signed a Memorandum of Understanding (MoU) on December 7, 2011. Matamec received a payment of CAD 1.5 million (USD 1,501,342.20) on February 2012 to bind the MoU with TTC.
With the signature of the Joint Venture Agreement (JVA) by which TRECan can acquire 49% undivided interest in the Kipawa heavy rare earth element deposit, Matamec received CAD 8.5 million (USD 8,507,605.80) for the first 25% undivided interest on July 18, 2012.
To acquire the second 24% undivided interest, TRECan has to pay to Matamec a maximum amount of CAD 7.5 million (USD 7,506,711). The CAD 1.1 million payment is the first of a number of successive payments in completion of the CAD 7.5 million, but the second overall payment received from TRECan.
Matamec will transfer the 24% undivided interest to TRECan when it will receive a cumulative maximum amount of CAD 7.5 million. Tags: Diversified Metals & Mining, Matamec Explorations, Inc., Toyota Tsusho Corp.
Source (English): Marketwire via BrightWire News
