Great Western Minerals Group Signs Letter of Intent to Be Major Long Term Rare Earth Material Supplier to Vacuumschmelze
September 19 2011 - 8:00AM
Marketwired
Great Western Minerals Group ("GWMG" or the "Company") (TSX
VENTURE: GWG) (OTCQX: GWMGF) is pleased to announce that it has
signed a non-binding Letter of Intent to enter into a long term
agreement with Vacuumschmelze GmbH & Co. KG ("VAC") of Germany
for the supply of rare earth alloys and metals. The Letter of
Intent specifies that VAC commits to purchasing a minimum of 50% of
its rare earth material needs from GWMG.
It is the stated goal of both VAC and GWMG to enter into a long
term, multi-year agreement, whereby GWMG's wholly owned subsidiary
Less Common Metals ("LCM") will be a major approved supplier to
VAC, producing and supplying neodymium / dysprosium alloys,
samarium alloys and associated metals specifically produced for
VAC's permanent magnet operation. That alloy / metal production
will be based on the long term supply of rare earth feed materials
from GWMG's Steenkampskraal mine.
LCM, a current supplier of samarium-cobalt alloys to VAC for the
manufacture of magnets and magnet assemblies, plans to install new
melting capacity to provide alloy composition and microstructure
that matches VAC's specifications into the future. This is expected
to provide mutually beneficial opportunities for future product
development.
VAC, the only sintered NdFeB permanent magnet producer for mass
volumes in Europe, has developed proprietary materials and
processes to produce one of the world's most powerful types of
permanent magnets for VAC's customers in Europe, the United States
and Asia. (See VAC website www.vacuumschmelze.de and select
language of choice at top of website).
GWMG President and Chief Executive Officer Jim Engdahl said,
"Moving toward a long term agreement as an approved supplier
through this Letter of Intent is yet another example of GWMG
systematically executing its fully integrated business model. Being
able to base our Company's expansion plans on an existing supplier
relationship with a company of the market stature of Vacuumschmelze
significantly increases the relevance of this LOI because our
company has a strong track record of being a highly qualified
supplier to VAC."
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 also holds
100% equity ownership in Rare Earth Extraction Co. Limited, which
owns a 74% equity interest in the Steenkampskraal Mine. In addition
to an exploration program at Steenkampskraal, GWMG also holds
interests in four active Rare Earth exploration and development
properties in North America.
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 entering into a binding
agreement with VAC, 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 Great Western
Minerals Group Ltd. 219 Robin Crescent Saskatoon, SK S7L 6M8
www.gwmg.ca
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