Geomega Resources (GMA.V) entered into a secured loan agreement for CA$1.4 million, it said in a statement on Wednesday.
Shares of the company were last seen up 17% at CA$0.275 on the TSX Venture Exchange.
The company arranged the loan financing with an arm's length private lender with whom Geomega has an established commercial relationship. The two-year loan bears interest at a rate of 10.5% per annum, with interest payable monthly, it said.
Loan proceeds will be used to support the expansion of Geomega's Saint-Hubert operations, including new laboratory and office space and the development and commissioning of its demonstration plant, while advancing its broader research and development and commercialization activities, the company said.
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