Great Western Minerals: Group Corporate Update
November 22 2011 - 1:05PM
Marketwired
Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX
VENTURE:GWG) (OTCQX:GWMGF) Corporate Holdings:
-- 1 Rare Earth former producer: Steenkampskraal mine in South Africa. GWMG
holds controlling interest in the mine through its 100% shareholding of
Rare Earth Extraction Co. Limited ("Rareco").
-- 2 Rare Earth processing plants: Less Common Metals Limited ("LCM") in
Birkenhead, U.K. and Great Western Technologies Inc. ("GWTI") in Troy,
Michigan.
-- 5 active Rare Earth exploration projects: 1 at the Steenkampskraal site,
4 in North America.
GWMG Corporate Focus:
GWMG continues to execute its strategic plan to become a "first
mover", as a fully integrated rare earth producer supplying its own
rare earth inputs into its production cycle. Management discusses
the strategy on the Company's website at
http://www.gwmg.ca/html/news/corporate_videos/index.cfm.
GWMG Corporate Coverage:
Three analysts cover GWMG:
-- Byron Capital Markets: Analyst - Jon Hykawy, Contact points:
jhykawy@byroncapitalmarkets.com, 647-426-1656
-- Euro Pacific Canada: Analyst - Tony Hayes, Contact points:
tony.hayes@europac.ca, 416-933-3357
-- Cormark Securities Inc.: Analyst - Edward Otto, Contact points:
eotto@cormark.com, 416-943-6748
Note: GWMG does not recommend nor endorse any research
reports.
GQD / GWMG Joint Venture Agreement:
After negotiating a Heads of Terms with Ganzhou Qiandong Rare
Earth Group Co. Ltd. ("GQD") of China to build a rare earth
separation plant in South Africa, located in proximity to GWMG's
Steenkampskraal operation, GWMG continues to discuss and negotiate
the terms of the shareholders agreement and an operating agreement.
GWMG and GQD have generally settled issues that include the joint
venture's corporate structure, ownership and compensation issues
and are working on detailed plant design that ensures LCM customer
requirements will be met. Representatives from GQD have been to
South Africa to inspect the proposed site of the separation plant,
and technical personnel from GWMG have visited GQD operations in
Ganzhou, China. Both management teams are working to finalize
details as rapidly as possible.
Steenkampskraal Mine Site Refurbishment Project:
GWMG's refurbishment of the Steenkampskraal mine shaft and
ancillary facilities continues to move ahead on schedule with an
expected completion date of December 2011. East Rand Engineering
Services has been contracted for the refurbishment of the mine
access decline, construction of a head gear and winding house, and
the installation of underground infrastructure services such as
ventilation fans and underground stores. The significant progress
of the refurbishment project can be seen on GWMG's website at
http://www.gwmg.ca/html/projects/mining/steenkampsraal_update/index.cfm
where photographs of the project for August, September and October,
2011 are available.
GWMG Financing:
GWMG closed an equity financing on November 10, 2011 as part of
the Company's overall funding requirements for the Steenkampskraal
project. The Company continues to pursue its top two financing
priorities - off-take agreements and debt instruments. GWMG is
discussing off-take opportunities with customers with the intent of
having them provide some of the funding required for the
Steenkampskraal project. The Company also plans to submit
applications to government and private financial institutions for
debt facilities that will have the potential to provide the
remainder of the financing for the Steenkampskraal project.
Less Common Metals Expansion:
LCM, located in Birkenhead U.K., is undertaking a significant
expansion of its alloy processing capacity. In December, 2011 LCM
staff will begin the commissioning of a new furnace that will
produce "flakes", a format preferred by customers, rather than the
tradition ingots. The new furnace is expected to increase
production by approximately 50% once it is in production very early
in 2012.
Corporate Summary:
GWMG is an integrated rare earth 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 Rareco, which
owns a 74% equity interest in the Steenkampskraal Mine. In addition
to an exploration program at Steenkampskraal, GWMG 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 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) 659-4500 Great Western Minerals Group
Ltd. 219 Robin Crescent Saskatoon, SK S7L
6M8info@gwmg.cawww.gwmg.ca
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