GREAT WESTERN
MINERALS GROUP LTD.
TSX Venture Symbol:
GWG
CUSIP: 39141Y 10 3
OTCQX:
GWMGF
GREAT WESTERN
MINERALS GROUP CORPORATE
UPDATE
December 31, 2012 - Saskatoon,
Canada: 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.
For further
information, please contact Dwight Percy, Manager of Investor
Relations at (306) 659-4516. Email inquiries should be made to
info@gwmg.ca and the company website is located at www.gwmg.ca.
Inquiries by direct mail should be addressed to Great Western
Minerals Group Ltd., 219 Robin Crescent, Saskatoon, SK S7L
6M8.
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.
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