Great Western Minerals Group and Ganzhou Qiandong Rare Earth Group Sign Rare Earth Separation Agreement
January 10 2012 - 7:00AM
Marketwired
Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX
VENTURE:GWG)(OTCQX:GWMGF) is pleased to announce that the joint
venture agreement ("Agreement") with Ganzhou Qiandong Rare Earth
Group Ltd. ("GQD") of China for the construction of a rare earth
separation plant in South Africa has been completed and signed.
Pursuant to the Agreement, the newly created joint venture
company, Great Western GQD Rare Earth Materials Proprietary Limited
("GWGQD") will immediately finalize the preliminary work already
underway on the process design and environmental components of the
separation plant and move toward construction of the facility.
A wholly owned subsidiary of GWMG will own mixed rare earth
chlorides, which GWGQD will process under a tolling agreement. The
Agreement provides that GWGQD will separate mixed rare earths into
products usable by GWMG's wholly owned subsidiary, Less Common
Metals Limited ("LCM"), and third party customers.
Under the terms of the Agreement, GQD receives 25% of the shares
of GWGQD for its contribution to design and construction of the
facility, and $7.5 Million of GWMG shares to be paid over three
years contingent on the facility being fully commissioned and
operating effectively, and fees and/or dividends for providing long
term management support for the operation of the separation
facility.
The separation plant will be constructed in close proximity to
GWMG's Steenkampskraal operation where the previously operating
mine is being refurbished and readied in anticipation of rare earth
mining.
GQD is a highly respected processor of Rare Earth oxides and
metals with over twenty years of operational experience in China
during which time it has been a significant supplier of metals and
oxides to LCM.
GWMG President and Chief Executive Officer Jim Engdahl said,
"This agreement represents one of the single most significant
milestones in the history of GWMG. We are exceptionally pleased to
have concluded such an important agreement between our Company and
GQD for the construction and operation of a rare earth separation
plant. Our agreement with GQD, with its two decades of rare earth
processing experience, means that we have successfully engaged a
rare earth industry leader as a joint venture partner to execute
the separation component of our Company's plan to be the most fully
integrated rare earth processing company outside of China."
Mr. Bin Gong, Chief Executive Officer of GQD said, "The signing
of this joint venture agreement between GQD and GWMG represents a
landmark development in the rare earth industry. This agreement
sets the foundation for our two companies to proceed to full
development of a separation facility within our joint venture.
While it may have taken us longer than expected to get to this
point, the complexities of such a groundbreaking agreement should
not be underestimated. However, we are now in a position to allow
the joint venture to proceed with all haste. Everybody at GQD looks
forward to a long and rewarding relationship with GWMG."
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 the successful
construction, commissioning and operation of the separation
facility, 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.
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) 659-4516 Great Western Minerals Group
Ltd. 219 Robin Crescent Saskatoon, SK S7L
6M8info@gwmg.cawww.gwmg.ca
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