Great Western Minerals Group Announces Intent to Complete Joint Venture Agreement With Search Minerals at Red Wine REE Proper...
June 28 2011 - 7:00AM
Marketwired
Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX
VENTURE: GWG)(OTCQX: GWMGF) is pleased to announce its intention to
accelerate the exercise of its option to earn-in to 50% of the Red
Wine Property controlled by Search Minerals Inc. ("Search") in
order to create the Joint Venture as detailed in the Option
Agreement ("the Agreement") signed on July 23, 2010.
Under the terms of the Agreement, GWMG has undertaken all of its
commitments including share and cash payments for the first two
periods (550,000 shares and $125,000) and have funded expenditures
of $1.45 million for the work commitment. Additionally GWMG has
carried out a metallurgical program of approximately $50,000 and
has therefore met all of the Work Commitment obligations under the
terms of the Option Agreement. In order to complete its obligations
and earn a 50% interest in the property, GWGM will issue to Search
an additional 500,000 shares and make a $100,000 cash payment.
Once this has been completed, and under the terms of the
Agreement, a 50-50 Joint Venture will have been formed between
Search and GWMG and will proceed under the terms detailed in the
Agreement.
Jim Engdahl, President and Chief Executive Officer of GWMG
stated: "The 2010 exploration program discovered a number of new
Rare Earth showings with a high percentage of Heavy Rare Earth
Elements. That, plus the encouraging drill results from the
Cabernet drilling program (see: GWMG News Release of March 7,
2011), has encouraged GWMG to move ahead with the formation of the
Joint Venture."
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 five 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.
CUSIP: 39141Y 10 3
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.
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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