Great Western Minerals Group to Acquire 100% of Rare Earth Extraction Co. Limited
May 30 2011 - 9:00AM
Marketwired
Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX
VENTURE: GWG)(OTCQX: GWMGF) announces that it is exercising its
rights under South African company law and has initiated the
process to compel the acquisition of all of the remaining shares of
Rare Earth Extraction Co. Limited ("Rareco") that it does not
already hold, which will result in a 100% shareholding of Rareco by
GWMG.
To date, GWMG holds 93.1% of the issued and outstanding shares
of Rareco. GWMG previously announced that it had posted an all-cash
offer circular to the shareholders of Rareco on December 21, 2010
and had acquired the requisite 90% of Rareco shares, which entitles
GWMG to initiate the compulsory acquisition provisions under
Section 440K of the Companies Act (South Africa). (See December 21,
2010 GWMG News Release: "Great Western Minerals Group Delivers
Offer Circular To Rareco Shareholders and March 2, 2011 GWMG News
Release: "Great Western Minerals Group Completes Rareco
Purchase").
Jim Engdahl, President and Chief Executive Officer of GWMG said,
"Moving to acquire 100% of Rareco furthers our Company's ability to
execute its fast track schedule for the Steenkampskraal property."
(See April 21, 2011 GWMG News Release: Great Western Minerals Group
Targets Earlier Dates and Increased Output at Steenkampskraal Rare
Earth Project)."
"In conjunction with the recent approval from the National
Nuclear Regulator of South Africa for GWMG's work program at
Steenkampskraal, our Company is in a very strong position to
continue its rapid advancement, having executed the steps to
acquire Rareco, right on schedule," added Engdahl.
Great Western Minerals Group Ltd. is an integrated Rare Earths
processor. Its specialty alloys are used in the battery, magnet and
aerospace industries. Produced at the Company's wholly owned
subsidiaries Less Common Metals Limited in Birkenhead, U.K. and
Great Western Technologies Inc. in Troy, Michigan, these alloys
contain aluminium, nickel, cobalt and Rare Earth Elements. As part
of the Company's vertical integration strategy, GWMG has signed an
Off-take Agreement for 100% of the Rare Earth Elements to be
produced at the former producing Steenkampskraal mine in South
Africa and holds 93.1% equity ownership in Rare Earth Extraction
Co. Limited, the owner of the Steenkampskraal mine. In addition to
a planned exploration program at Steenkampskraal, GWMG also holds
interests in six Rare Earth exploration and development properties
in North America.
Email inquiries should be made to info@gwmg.ca and the company
website is located at www.gwmg.ca. Inquiries by direct mail should
be addressed to Great Western Minerals Group Ltd., 219 Robin
Crescent, Saskatoon, SK S7L 6M8.
Certain information set out in this News Release constitutes
forward-looking information. Forward-looking statements (often, but
not always, identified by the use of words such as "expect", "may",
"could", "anticipate" or "will" and similar expressions) may
describe expectations, opinions or guidance that are not statements
of fact and which may be based upon information provided by third
parties. Forward-looking statements are based upon the opinions,
expectations and estimates of management of GWMG as at the date the
statements are made and are subject to a variety of known and
unknown risks and uncertainties and other factors that could cause
actual events or outcomes to differ materially from those
anticipated or implied by such forward-looking statements. Those
factors include, but are not limited to, the results of the
exploration program, a resource estimate and commencement of
production at Steenkampskraal, satisfaction of the conditions
precedent with respect to GWMG's offtake agreement, receipt of all
required approvals (including those relating to the commencement of
production at the Steenkampskraal mine) and risks, uncertainties
and other factors that are beyond the control of GWMG, risks
associated with the industry in general, commodity prices and
exchange rate changes, operational risks associated with
exploration, development and production operations, delays or
changes in plans, risks associated with the uncertainty of reserve
or resource estimates, health and safety risks and the uncertainty
of estimates and projections of production, costs and expenses. In
light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place
undue reliance upon forward-looking information. Although GWMG
believes that the expectations reflected in the forward-looking
statements set out in this press release or incorporated herein by
reference are reasonable, it can give no assurance that such
expectations will prove to have been correct. The forward-looking
statements of GWMG contained in this News Release, or incorporated
herein by reference, are expressly qualified, in their entirety, by
this cautionary statement and the risk factors contained in GWMG's
current annual information form available at www.sedar.com.
CUSIP: 39141Y 10 3
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Great Western Minerals Group Ltd. Dwight Percy Manager
of Investor Relations (306) 659-4500 info@gwmg.ca www.gwmg.ca
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