TSX Venture Symbol: GWG
CUSIP: 39141Y 10 3
OTCQX: GWMGF
SASKATOON, Dec. 31,
2012 /PRNewswire/ - Great Western Minerals Group Ltd.
("GWMG" or the "Company", TSX:V - GWG) today issued an update on
issues pertinent to the Company's progress and status.
Preliminary Economic Assessment ("PEA"): GWMG
plans to issue a media release that contains the results of its PEA
in January 2013. While the Company
had targeted the issuance of the release for the 4th
Quarter of 2012 it was determined that the relative complexity of
the PEA, incorporating mining, chloride production, separation,
metal making, alloy manufacturing and product sales, meant that
additional time would be required in order to integrate all
components of the analysis. In addition, during the course of work
on the PEA, GWMG made the decision to undertake a revised resource
estimate. This extended, yet again, the scope of work to be
incorporated into the PEA.
Chief Executive Officer ("CEO") Search: The GWMG
search committee is in the final stages of the selection process
for a new CEO. The search committee, with the assistance of Korn
Ferry International, has been actively engaged in the evaluation of
several highly qualified candidates who have the requisite skills
with which to lead a complex business operation such as GWMG. The
search committee anticipates it will be in a position to announce
the selection of the CEO early in 2013.
Vredendal Separation Plant Basic Assessment
Report: GWMG commissioned Savannah Environmental (Pty) Ltd., of
Gauteng, South Africa, to prepare
a Basic Assessment Report ("BAR"), which addresses all regulatory
and environmental requirements for projects located on the
industrial zoned land on which GWMG plans to construct its
separation plant (see GWMG news release August 30, 2012). During the development of
the BAR, the Company made the decision to increase the amount of
land designated for the separation plant to 19.9 hectares on the
advice of its technical advisor on the project, Ganzhou Qiandong
Rare Earth Group Ltd. ("GQD"). As a result of the site expansion, a
road transport study was necessitated. GWMG anticipates the
expanded report will be submitted to the South African Department
of Environmental Affairs and Development Planning by mid-February 2013. In addition, a Land Use
Planning Ordinance ("LUPO") application is underway through the
Company's consultants, Planning Partners. The preliminary LUPO
application for rezoning has been submitted, accompanied by
information and technical studies from the draft BAR, to the
Matzikama Municipality. It is anticipated the LUPO application
process will be completed by the end of the 1st Quarter
of 2013.
Steenkampskraal Mixed Chloride Production Plant:
GWMG's mixed chloride production plant contractor, DRA Mineral
Projects (Pty) Ltd., has developed a revised "Work Breakdown
Structure" and is fully engaged in the tendering process for goods
and services for the construction of the mixed chloride plant at
the Steenkampskraal site. GWMG is targeting the 1st
Quarter of 2013 for the commencement of on-site construction
work.
Director Options: The Company announces that it
has granted to newly appointed Company director, Marc LeVier, 400,000 options to acquire common
shares of the Company. The options are exercisable into common
shares of Great Western Minerals Group Ltd. at a price of
$0.22 per share for a period of five
years from the date of grant, December 21,
2012, and will vest in accordance with the Company's stock
option plan.
Warrant Expiry:
The Company had previously extended the exercise term for
41,413,723 warrants originally issued on October 19, 2010 and having an exercise price of
$0.45 per Warrant (see GWMG news
release December 6, 2012) to
January 15, 2013. GWMG announces
today that it will not be making application to the TSX Venture
Exchange for further extension of the expiry date.
Planned Milestones for Early 2013: During the
early stages of 2013, GWMG anticipates the execution of a number of
significant milestone events as it continues to develop as a first
mover in the rare earth industry outside of China and one of the most fully integrated
rare earth companies in the world. These milestones include:
- Preliminary Economic Assessment: As noted, the PEA news release
scheduled for January 2013 is to
include confirmation of estimated capital expenditure requirements
for the mine, mixed chloride facility and separation facility,
estimated operating expenditures for the fully integrated business
model, a new resource estimate and timelines for the next steps in
the Steenkampskraal construction process. Significantly, the PEA
will enable the Company to publicly discuss financial projections
for the fully integrated business model.
- CEO appointment.
- An announcement that production using the new strip cast
furnace has commenced on a commercial basis at the Company's wholly
owned subsidiary Less Common Metals ("LCM") in the United Kingdom.
- An announcement that LCM's second strip cast furnace has
arrived and is being commissioned for production.
- Updates on the chloride production plant at
Steenkampskraal.
- Updates on the separation plant at Vredendal.
- Updates on the Company's previously announced evaluation of the
spinoff of its non-South African exploration properties.
- Additional assay results from the ongoing exploration program
at GWMG's Steenkampskraal operation.
GWMG Interim President and Chief Executive
Officer Robert Quinn said, "We
realize the past months have been a trying time for investors.
Company management is aware of the impact of slippages from
previously announced time targets. We remain committed to executing
our plan that will create one of the most highly integrated rare
earth companies outside of China.
As we continue through the process with the milestones noted in
this release we believe the market will be able to see, with
increasing clarity, the financial strength of the business model
that has been envisaged since the formation of GWMG."
Great Western Minerals Group Ltd. is engaged in
becoming an integrated rare earth producer. The Company currently
produces specialty alloys which are used in the aerospace,
automobile, computer and high-tech 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 iron, 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 South
Africa. In addition to an exploration program at
Steenkampskraal, GWMG also holds interests in four active rare
earth exploration and development properties in North America.
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.
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 and timely completion of its preliminary
economic assessment at Hoidas Lake; the successful and timely
completion and the results of its preliminary economic assessment
of the Steenkampskraal project, the construction, commissioning and
operation of the proposed monazite processing facility and
separation facility, mine refurbishment activities, reliance on
third parties to meet projected timelines and commencement of
production at Steenkampskraal; risks related to the receipt of all
required approvals including those relating to the commencement of
production at the Steenkampskraal mine, delays in obtaining
permits, licenses and operating authorities in Canada, South
Africa and China,
environmental matters, water and land use risks; 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 resource estimates; health and
safety risks; uncertainty of estimates and projections of
production, costs and expenses; risks that future Hoidas Lake or
Steenkampskraal and region exploration results may not meet
exploration or corporate objectives; the adequacy of the Company's
financial resources and the availability of additional cash from
operations or from financing on reasonable terms or at all;
political risks inherent in South
Africa and China; risks
associated with the relationship between GWMG and/or its
subsidiaries and communities and governments in Canada and South
Africa, radioactivity and related issues, dependence on one
mineral project; loss of, and the inability to attract, key
personnel; the factors discussed in the Company's public disclosure
record; and other factors that could cause actions, events or
results not to be as anticipated. 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.
Except as required by law, GWMG does not assume any obligation to
update forward looking statements as set out in this news release.
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 Professional Securities Market
listing particulars available at www.sedar.com.
SOURCE Great Western Minerals Group Ltd.