Great Western Minerals Group Satisfies Escrow Conditions for Release of Offering Funds
SASKATOON, CANADA -- (Marketwire) -- 05/10/12 -- Great Western Minerals Group Ltd. ("GWMG" or the "Company"), (TSX VENTURE: GWG) (OTCQX: GWMGF) is pleased to report that it has satisfied the escrow release condition of the convertible bond financing (the "Offering") (See GWMG April 5, 2012 media release: GWMG Announces Closing of US$90 Million Convertible Bond Financing). The remaining funds, net of US$10.8 million that will remain in escrow to satisfy interest payments, will be released immediately to the Company.
In order to satisfy the escrow release condition, GWMG was obligated to have Caracle Creek International Consulting Inc. ("CCIC") provide the escrow agent with a letter ("Confirmation Letter") confirming that at least 20,000 metric tonnes of Total Rare Earth Oxides ("TREO"), in the sum of the Measured, Indicated, and Inferred resource categories using a one per cent cut-off grade, are present at the Steenkampskraal property.
The Confirmation Letter indicates the presence of at least 26,600 metric tonnes of TREO under the Inferred resource category. The Company expects to file the compliant resource estimate on the Steenkampskraal property (the "NI 43-101 Report") on or before May 31, 2012.
The Confirmation Letter is based on geological and assay information limited to the immediate area of the historic mine developments at Steenkampskraal including: recent resource confirmation drilling; the first phase of underground channel sampling; structural mapping; and underground mapping of mineralization.
Not included in the Confirmation Letter, but anticipated to be incorporated into the NI 43-101 Report, are results from recent sampling of mineralization in the up-dip and down-dip extremities of the historic mine area, the two tailings dams, and the rock dump.
As well, GWMG remains actively engaged in exploration activities at Steenkampskraal, as previously announced (See: GWMG Corporate Update media release, February 7, 2012). The Company launched a minimum 3,000 meter HQ drilling program that includes targeting extensions of mineralization on-strike and down-dip to the west and east, and outboard targets located in close proximity eastward from the historic mine site. A second exploration drilling program of continued infill and step-out boreholes building on positive results from the first exploration program is also planned for Steenkampskraal.
GWMG President and Chief Executive Officer Jim Engdahl stated, "We are extremely pleased to be able to deliver, as scheduled, the Confirmation Letter that enables the release of funds from the Offering. With these funds in place, we are positioned to continue with the development of the Steenkampskraal operation including the continuation of exploratory drilling that we anticipate will further increase the resource calculation."
Quality control measures for all assay results were assessed by CCIC during ongoing analytical procedures and staged receipt of assay data from the SGS Canada laboratory located in Toronto, Ontario.
Brent Jellicoe, B.Sc., P.Geo, is the Qualified Person for GWMG that is responsible for evaluation and exploration activities at Steenkampskraal, and for supervising the preparation of the technical contents of this news release. John Hancox, Ph.D., Pr.Sci.Nat., of CCIC is the principal independent Qualified Person responsible for supervising the ongoing resource evaluation of Steenkampskraal for GWMG.
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 aluminum, 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, the NI 43-101 Report being filed on SEDAR by May 31, 2012, the results of the NI 43-101 Report not having any material adverse differences from the Confirmation Letter, 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, the results of the exploration program at Steenkampskraal, 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 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 reserve or resource estimates, health and safety risks, uncertainty of estimates and projections of production, costs and expenses, risks that future Steenkampskraal and region exploration results may not meet exploration or corporate objectives, the sufficiency of current cash and reserves as well as 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 South Africa, radioactivity and related issues, dependence on one mineral project, loss of 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 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) 659-4516
info@gwmg.ca
Great Western Minerals Group Ltd.
219 Robin Crescent
Saskatoon, SK S7L 6M8
www.gwmg.ca