Geomega Signs LOI with Everwin Magnetics

MONTREAL, Feb. 04, 2021 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX.V: GMA) (OTC: GOMRF) a developer of clean technologies for the mining, refining and recycling of rare earths, and Everwin Magnetics Co., Ltd. (“Everwin”), a subsidiary of Forte Mobility Co., Ltd. are pleased to announce that they have entered into a Letter of Intent (LOI) to recycle rare earth-containing production waste from Everwin’s future production facilities in Ontario, Canada.

Everwin is developing the first NdFeB magnet production facility in Canada that will go from machining to surface treatment and is targeting to start with approximately 300 tonnes of annual production of rare earth magnets. Its focus is providing magnets and motors to the North American market while its parent company Forte Mobility specializes in Electric Vehicles and battery systems.

“It was only a question of time before companies like Everwin have decided to bring the expertise they have developed over decades in the magnet industry in China to Canada. The favorable energy rates, a healthy labour market, direct access to the North American market, the growing electric vehicle sector and now a recycling facility with Geomega to process magnet scraps and swarf, make Canada an ideal location to develop a magnet facility. We are very excited to be working with Everwin as they look to start production in Canada. This type of operation will produce on average 25% magnet waste and swarf that will need to be recycled at our rare earths recycling facility in St-Bruno.” commented Kiril Mugerman, President and CEO of Geomega.

“Our main market will be focused on various permanent magnet motors used in cars, especially the EVs as there will be a significant demand. The increase of manufacturing cost in Asia combined with automation of the production process and the cooperation with Geomega to further reduce the waste by recycling makes it competitive to produce the magnet here in North America. This will improve our customer satisfaction by reducing lead-time and convenient communication. Another advantage is the favourable treatment for locally made magnets under the new USMCA. We shall have a complete supply chain from rare earth raw materials to finished magnet products and recycling thanks to a large resource of these materials in North America. With 30 years experience in the industry, we are confident that we will provide customers the best value under this cooperative structure with Geomega.” commented Howard Peng, General Manager of Everwin.