GREAT WESTERN MINERALS GROUP CORPORATE UPDATE
Nov 22, 2011
OTC Disclosure News Service
Saskatoon, SK, Canada –
Corporate Update – As at November 22, 2011
Great Western Minerals Group Ltd. (“GWMG” or the “Company”) 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: firstname.lastname@example.org, 647-426-1656
· Euro Pacific Canada: Analyst – Tony Hayes, Contact points: email@example.com, 416-933-3357
· Cormark Securities Inc.: Analyst – Edward Otto, Contact points: firstname.lastname@example.org, 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 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.
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.
For further information, please contact Dwight Percy, Manager of Investor Relations at (306) 659-4500. Email inquiries should be made to email@example.com 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 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.
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