TSX Venture Symbol: GWG
OTCQX: GWMGF
SASKATOON, Feb. 21,
2013 /PRNewswire/ - Great Western Minerals Group Ltd.
("GWMG" or the "Company"), (TSXV: GWG) today announced that as a
result of an internal investigation into the activities of
Vincent Mora, who had previously
provided services to the Company as Project Director and was
terminated for cause, suspicions were raised about invoicing,
purchasing and contracting activities. Because irregularities were
found during the Company's review, GWMG filed a complaint and
cooperated with the South African police to investigate the
possibility of criminal activity. As a result of this
investigation, police have arrested Vincent
Mora on suspicion of fraud and money laundering.
GWMG, through its South African legal counsel,
has been actively engaged in assisting the South African police
with the criminal proceedings and is completing the Company's full
assessment of the nature of the activity that took place. The
Company is also conducting a review of compliance with its internal
controls.
Investigation into the activities of East Rand
Engineering Services ("ERES"), the contractor that was awarded the
earthworks and mine refurbishment contract, led GWMG to terminate
its contract with that company (see GWMG news release
November 26, 2012). The Company
has paid ERES approximately C$10.62
million to date out of an invoiced amount totaling
approximately C$13.32 million
(exclusive of VAT). The Company's quantity surveyors and
engineers are assessing the completed and partially completed works
and GWMG is pursuing all available options, including the
commencement of civil claims, to recover any damages which may have
occurred.
GWMG President and Chief Executive Officer
Marc LeVier said, "GWMG will pursue
every legal avenue available to recoup any losses that may have
arisen through this situation. We will continue to assist the
police in their investigation of the criminal acts that have
violated the trust of the Company."
Mr. LeVier went on to say, "Steenkampskraal
remains a great project with one of the few real opportunities to
be a leader in the rare earth sector. Our plans to become a
vertically integrated mine-to-market company, with unique market
access, continue to guide our efforts. We have great
employees, with high levels of integrity and values, with whom we
will continue to build a team of excellence and the actions of a
few persons should not reflect upon the rest of our team.
GWMG has the ability to deliver the Steenkampskraal project and we
will do so as we build a relationship of trust with our
investors."
Because this matter involves an ongoing criminal
investigation and civil matter, the Company and its spokespersons
will not be able to provide additional information at this
time.
Great Western Minerals Group Ltd. is engaged in
becoming an integrated rare earth producer. 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 Ellesmere Port, U.K. and Great Western Technologies Inc.
in Troy, Michigan, these alloys
contain transition metals including nickel, cobalt, iron 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 controls the Steenkampskraal Monazite
Mine. In addition to an exploration program at Steenkampskraal,
GWMG also holds interests in four 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, risks associated with the uncertainties inherent in
litigation and civil proceedings, including uncertainties regarding
the ability to prove any claims, the estimation of potential
damages and any possible recovery thereof; uncertainty of resource
estimates, in particular those relating to Inferred
resources; risks relating to estimating grades, in particular
where interpolation is used to estimate grades; 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 and mine refurbishment activities;
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; 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; the successful and
timely completion of its preliminary economic assessment at Hoidas
Lake; 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; 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; 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.