Great Western Minerals Group Announces Pricing on Previously Announced $15 Million Private Placement
October 31 2011 - 9:56AM
Marketwired
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY
AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Great Western Minerals Group Ltd. (TSX VENTURE:GWG)
(OTCQX:GWMGF) ("GWMG" or the "Company") is pleased to announce that
the Company and a syndicate of agents co-led by Byron Capital
Markets Ltd. ("Byron") and Cormark Securities Inc. ("Cormark") and
including GMP Securities LP ("GMP") (collectively, the "Agents")
have priced the Company's previously announced private placement
(the "Offering").
The Agents will offer an aggregate of 23,810,000 of common
shares (the "Offered Shares") of the Company at a price of $0.63
per share (the "Offering Price"). In addition, the Company has
granted the Agents an option, exercisable at any time up to 48
hours prior to closing of the Offering, to place up to an
additional 3,571,500 Offered Shares at the Offering Price for
additional gross proceeds of $2.25 million, if the option is
exercised in full. The Company expects that closing of the Offering
will occur on or before November 10, 2011.
The Offered Shares will be subject to a four month hold period
under applicable Canadian securities legislation. The Company plans
to use the proceeds for the continued development of its
Steenkampskraal project in South Africa as well as for general
corporate purposes.
The Agents will receive an aggregate cash commission of 5% of
the gross proceeds of the Offering. Closing of the Offering is
subject to all applicable regulatory approvals, including the final
acceptance of the TSX Venture Exchange. Readers are cautioned that
there is no guarantee the Offering will be completed on the terms
proposed, or at all.
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.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any state in the United States in which
such offer, solicitation or sale would be unlawful. The securities
referred to herein have not been and will not be registered under
the United States Securities Act of 1933, as amended, and may not
be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. This press
release may contain statements within the meaning of safe harbour
provisions as defined under United States Securities Laws and
Regulations. The above statements are based on the current
expectations and beliefs of management and are subject to a number
of risks and uncertainties that may cause the actual results to
differ materially from those described above.
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 completion of the proposed
financing on the anticipated terms or at all, refurbishment
activities and reliance on third parties to meet projected
timelines, the results of the exploration program at
Steenkampskraal, 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) 659-4500info@gwmg.ca Great Western
Minerals Group Ltd. 219 Robin Crescent Saskatoon, SK S7L
6M8www.gwmg.ca
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