Great Western Minerals Group Signs Groundbreaking Heads of Terms to Build Rare Earth Separation Plant in South Africa
July 25 2011 - 7:00AM
Marketwired
Great Western Minerals Group ("GWMG") (TSX VENTURE: GWG)(OTCQX:
GWMGF) is pleased to announce that it has negotiated a Heads of
Terms with Ganzhou Qiandong Rare Earth Group Ltd. ("GQD") of China
to build a Rare Earth separation plant in South Africa, located in
proximity to GWMG's Steenkampskraal operation.
The Heads of Terms agreement between the two companies will form
the basis of the project. Signing the Heads of Terms agreement in
July 2011 positions GWMG to work toward the final agreement by the
end of August 2011.
A new joint venture company, Great Western GQD Rare Earth
Materials Co. Ltd., will be created in which GWMG will hold 75%
ownership while GQD will hold the remaining 25%.
Great Western GQD Rare Earth Materials Co. Ltd. will be
responsible for the design, manufacture, construction,
commissioning and operation of the planned separation facility. It
is anticipated that the separation plant will be fed with Rare
Earth chloride that GWMG produces at its Steenkampskraal monazite
mine and/or with feedstock from sources in the region.
GQD is a highly respected Chinese processor of Rare Earth oxides
and metals with over twenty years of operational experience. GQD
has been a supplier of metals and oxides to GWMG's wholly-owned
subsidiary, Less Common Metals Limited ("LCM") for over fifteen
years.
GWMG President and Chief Executive Officer Jim Engdahl said,
"Our agreement with GQD marks one of the most significant
developments so far in the delivery of our fully integrated Rare
Earth business model. GQD's experience in the rare earth industry
will ensure our new facility will be at the cutting edge of solvent
extraction processing. GWMG's team of metallurgists will be working
closely with those from GQD to finalize process and plant design in
order to commence construction of this plant early in 2012. This
agreement is a major step in our plans to deliver separated Rare
Earth oxides and metals to the world market by the beginning of
2013."
Mr. Gong Bin, Chairman of the Board and President of GQD stated,
"The world of Rare Earths has gone through significant changes in
the past two years. We at GQD welcome this opportunity to work with
GWMG and our old friends at LCM in establishing a new integrated
Rare Earths producer that is able to supply ever increasing world
demand."
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 holds 100%
equity ownership in Rare Earth Extraction Co. Limited, which owns a
74% equity interest in 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 execution and delivery
of a definitive agreement encompassing the Heads of Terms and the
proposed joint venture, 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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