May 27, 2014 – Toronto, Ontario – Matica Resources Inc. (GRF) (“Matica” or the “Company”) states that further to the Company’s announcement of May 8, 2014 regarding the reviewing of a number of medical marihuana projects, the Company wishes to clarify a number of points in connection with a review by the Ontario Securities Commission (OSC). The Company is still exploring whether to enter the medical marihuana business and is at an early stage of discussion with the various target projects. The Company has not yet made any decision on which, if any, projects it will pursue. We are currently conducting site visits of projects and will be reporting on any further developments.
Matica will only enter the medical marihuana business should the Company come to an agreement with the suitable target project. Should an appropriate target project be found the Board will need to approve a decision to enter the medical marihuana business, also shareholder approval may be necessary depending on the nature of the deal entered into. In addition, there are a great many other variables depending on the type of transaction that ensues, such as the fact that the Company may or may not be the entity that applies for a medical marihuana licence, as the involvement of the Company in any target medical marihuana projects has not yet been decided.
Should Matica opt to become a producer and choose to make an application, we will need to complete Health Canada’s Application To Become A Licenced Producer Under The Marihuana For Medical Purposes Regulations (MMPR). Any Canadian based project would need to meet stringent requirements as outlined by Health Canada. Any entity applying for a license from Health Canada would need to be an indoor facility equipped with physical barriers which prevent unauthorized entry in to the facility and further physical barriers to all growing areas are required. The perimeter of the licensed producer’s site must have visual recording devices capable of recording in a visible manner any attempted or actual unauthorized access. The perimeter of the licenced producer’s site must be secured by an intrusion detection system that operates at all times and that allows for the detection of any attempted or actual unauthorized access to or movement in the site or tampering with the system. The system must be monitored at all times by personnel who must determine the appropriate steps to be taken in response to the detection of any occurrence of attempted or actual unauthorized access. If any such occurrence is detected, the personnel must make a record of: the date, time of the occurrence; and along with a visual monitoring with recording devices, intrusion detection systems (alarms) and separate air filtration systems. Growing areas within the site must also be visually monitored at all times by visual recording devices to detect illicit conduct. The intrusion detection system must be monitored at all times by personnel who must determine the appropriate steps to be taken in response to the detection of any occurrence of illicit conduct, any attempted or actual unauthorized access to or movement in those areas or tampering with the system.
Obviously the cost of such security measures will be considerable and the readiness of each facility will weigh in the Company’s decision regarding the target projects. Likewise, the construction time will vary and will impact the date of licence application as the facility must be ready for Health Canada site inspection prior to a licence being granted.
ABOUT MATICA GRAPHITE
While pursuing alternative projects, Matica will continue to conduct exploration on its resource projects. Matica has graphite projects in Buckingham Quebec. Buckingham is a historic graphite producing area which has been the scene of renewed exploration activity. The Company has recently entered into an option for an additional 22 claims in the Buckingham area doubling its land position there. The Company has also signed an LOI for a graphite property in Nevada, the Grumpy Lizard, and is currently evaluating the project. Matica trades on the CSE under the symbol GRF. For more information on Matica Graphite visit the website at Maticagraphite.com.
On behalf of the Board of Directors
MATICA RESOURCES INC.
CEO & Chairman
For further information, please contact Boris Ziger, Chief Executive Officer, at:
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation’s filings with the Canadian securities regulators, which filings are available at www.sedar.com.
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