Geomega Resources Inc. has entered into a secured loan agreement for a principal amount of $1.35 million to support operations and research and development activities at its Saint-Hubert facility in Quebec.

The agreement provides net proceeds of $1.323 million after a 2% administrative fee of $27,000 was deducted at closing. The financing carries a two-year term maturing on September 14, 2028, and bears interest at 10.5% per annum, payable monthly. The loan is secured by movable assets, including refundable research and development tax credits. A portion of the principal will be repaid as those tax credits are received, and the facility can be prepaid without penalty after the first six months. The loan is non-convertible into securities.

The capital will support the expansion of Saint-Hubert operations, including new laboratory and office space, alongside the development and commissioning of the rare earth magnet recycling demonstration plant. Commissioning for the plant is expected to begin in November 2026. The financing structure is designed to accelerate access to refundable tax credits, reducing the timing gap between eligible expenditures and cash receipts to improve working capital management.

“This financing aligns our funding structure more closely with the recurring R&D expenditures generated by our development programs,” commented Mathieu Bourdeau, CFO of Geomega. “By accelerating access to the value of refundable tax credits, it helps us maintain momentum across our technology-development initiatives and manage working capital more efficiently as certain government-funded programs are completed.”

— Mathieu Bourdeau, CFO

The company’s Saint-Hubert operations have previously been backed by multiple funding arrangements, including a $2 million convertible debenture closed in March 2025 and a $750,000 contribution from Canada Economic Development announced in December 2025. These deployments form part of a broader strategy to progressively de-risk clean technologies through laboratory, pilot, and demonstration scale development while aligning financing solutions with recurring research and development expenditures.

Shares of Geomega are currently trading at $0.255, up 8.51% in the session.

Read the full announcement: Geomega Announces $1.35 Million Non-Dilutive Loan Financing