Great Western Minerals Group Signs Letter of Intent to Be Major Long Term Rare Earth Material Supplier to Vacuumschmelze
SASKATOON, SASKATCHEWAN -- (Marketwire) -- 09/19/11 -- Great Western Minerals Group ('GWMG' or the 'Company') (TSX VENTURE: GWG) (OTCQX: GWMGF) is pleased to announce that it has signed a non-binding Letter of Intent to enter into a long term agreement with Vacuumschmelze GmbH & Co. KG ('VAC') of Germany for the supply of rare earth alloys and metals. The Letter of Intent specifies that VAC commits to purchasing a minimum of 50% of its rare earth material needs from GWMG.
It is the stated goal of both VAC and GWMG to enter into a long term, multi-year agreement, whereby GWMG's wholly owned subsidiary Less Common Metals ('LCM') will be a major approved supplier to VAC, producing and supplying neodymium / dysprosium alloys, samarium alloys and associated metals specifically produced for VAC's permanent magnet operation. That alloy / metal production will be based on the long term supply of rare earth feed materials from GWMG's Steenkampskraal mine.
LCM, a current supplier of samarium-cobalt alloys to VAC for the manufacture of magnets and magnet assemblies, plans to install new melting capacity to provide alloy composition and microstructure that matches VAC's specifications into the future. This is expected to provide mutually beneficial opportunities for future product development.
VAC, the only sintered NdFeB permanent magnet producer for mass volumes in Europe, has developed proprietary materials and processes to produce one of the world's most powerful types of permanent magnets for VAC's customers in Europe, the United States and Asia. (See VAC website www.vacuumschmelze.de and select language of choice at top of website).
GWMG President and Chief Executive Officer Jim Engdahl said, 'Moving toward a long term agreement as an approved supplier through this Letter of Intent is yet another example of GWMG systematically executing its fully integrated business model. Being able to base our Company's expansion plans on an existing supplier relationship with a company of the market stature of Vacuumschmelze significantly increases the relevance of this LOI because our company has a strong track record of being a highly qualified supplier to VAC.'
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 entering into a binding agreement with VAC, the results of the exploration program, 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
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Contacts:
Great Western Minerals Group Ltd.
Dwight Percy
Manager of Investor Relations
(306) 659-4500
info@gwmg.ca
Great Western Minerals Group Ltd.
219 Robin Crescent
Saskatoon, SK S7L 6M8
www.gwmg.ca