Toyotsu Rare Earth Canada Inc. ("TRECan"), a subsidiary of Toyota-Tsusho Corp. ("TTC"), has paid US$1.3 million, which is the first of a series of payments for its committed equity acquiring of 49% undivided interest in the Kipawa HREE Deposit of Matamec Explorations Inc.
Matamec confirmed in an email that Toyota's subsidiary had received a second payment of worth 1,119,776 CAD (USD 1.3 million) from its Japanese partner Toyotsu Rare Earth Canada Inc.
The Japanese manufacturer needs to secure its rare earths supply after a supply breakdown from China arising from the Diaoyu Islands dispute. Rare earths are used to manufacture some important automotive and electronic parts of hybrid vehicles.
According to the terms of the agreement signed between Matamec and TRECan, the Japanese-owned subsidiary paid for the 25 per cent undivided interest for 8.5M CAD on July 18, 2012.
To secure the rest of the 24 per cent, Matamec has agreed to receive in successive payments to reach the total of 7.5M CAD.
Matamec president Mr. Andre Gauthier said in the emailed statement that by the second overall payment from TRECan, Matamec will transfer the 24 per cent undivided interest to the company, though cumulative payments will still be made by TRECan.
This is a big investment gamble for the Toyota affiliate as the company shelled out 16 million CAD for the feasibility and is set to sign an off-take agreement to buy 100% of a mixed rare earths concentrate from the mines.
Matamec is a junior mining exploration company whose main focus is in developing the Kipawa HREE deposit exploring more than 35km of strike length in the Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property in Quebec, Canada.
Another project in Quebec, is Matamec's exploration of lithium and tantalum on its Tansim property and for precious and base metals on its Sakami, Valmont and Vulcain properties. It is exploring for gold together with Northern Superior Resources Inc. on the Lesperance/Wachigabau property.
Matamec is also exploring for gold, base metals and platinum group metals. Its gold portfolio includes the Matheson JV property located along strike and in close proximity to the Hoyle Pond Mine in the prolific mining camp of Timmins, Ontario.
About Matamec Matamec Explorations Inc. is a junior mining exploration company whose main focus is in developing the Kipawa HREE deposit with TRECan. Following the positive conclusion of the PEA study filed on SEDAR in March 2012 and the hiring of a V-P Project development and Construction, Matamec and TRECan decided to move directly to the feasibility study.
The March 2012 press release highlighted that the project has robust economics such as: $606 million before-tax value (NPV8%), a 36.9% before-tax IRR, $2.8 billion revenue, $1.67 billion EBITDA, a before-tax payback period of 2.4 years, etc. (see press release dated January 30, 2012). In parallel, the