Great Western Minerals Group and GQD Making Substantial Progress on Steenkampskraal Rare Earth Separation Plant
September 29 2011 - 9:37AM
Marketwired
Great Western Minerals Group (TSX VENTURE: GWG) (OTCQX: GWMGF)
("GWMG" or the "Company") is pleased to announce that substantial
progress is being achieved, with the active participation of
Ganzhou Qiandong Rare Earth Group Ltd. ("GQD") of China, in the
development work on the rare earth separation plant in the vicinity
of Steenkampskraal in South Africa.
On July 25, 2011, GWMG and GQD signed a Heads of Terms that will
form the basis of the final agreement (the "Agreement") between the
two companies. A new joint venture company, Great Western GQD Rare
Earth Materials Co. Ltd., is to be created with GWMG holding 75%
ownership and GQD holding 25%.
In the upcoming week, GQD will send a team of six engineers to
South Africa to continue detailed discussions with GWMG personnel
on the design and construction of the separation plant. GWMG will
be represented by two Company Directors, the Chairman of Rare Earth
Extraction Co. Ltd., the Steenkampskraal Project Director, and
GWMG's metallurgical and technical staff.
GWMG will also host a Steenkampskraal site visit for GQD
followed by meetings with Steenkampskraal region government
officials to discuss arrangements for utilities and labour
requirements for the project. Concurrently, GWMG and GQD
representatives will be working on the finalization of the
Agreement between the two companies.
Jim Engdahl, President and Chief Officer of GWMG said, "We
continue to work our way through the development process for the
separation plant with the active participation of GQD. Thanks to
the long standing business relationship between GWMG's Less Common
Metals and GQD, the minor delay we have experienced in finalizing
the Agreement is not preventing GQD from being fully involved in
the work on the separation plant, as evidenced by the upcoming
meetings and site visit."
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 refurbishment activities
and reliance on third parties to meet projected timelines, 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 Great
Western Minerals Group Ltd. 219 Robin Crescent Saskatoon, SK S7L
6M8
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