Great Western Minerals Group Announces Pricing of Offering and Filing of Final Prospectus
SASKATOON, SASKATCHEWAN--(Marketwire - Oct. 6, 2010) -
(NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES)
Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (OTCQX:GWMGF) ("GWMG" or the "Company") is pleased to announce that, further to its press release on September 21, 2010, it has entered into an agency agreement with Byron Securities Limited and Salman Partners Inc. (the "Agents") in respect of the offering contemplated by the preliminary short form prospectus dated September 20, 2010. Under the terms of the agency agreement, the Agents will offer, on a best efforts basis, up to a maximum of 106,060,606 units ("Units") of GWMG at a price of $0.33 per Unit (the "Offering Price") for gross proceeds to the Company of up to $35,000,000 (the "Unit Offering"). Each Unit consists of one common share of GWMG (a "Unit Share") and one-half of one common share purchase warrant (each whole warrant, a "Unit Warrant").
Each whole Unit Warrant shall entitle the holder thereof to purchase one Common Share for a price of $0.45 per common share (each a "Unit Warrant Share") until 4:00 p.m. (Saskatoon time) on the date which is two years from the closing of the Unit Offering.
Closing of the Unit Offering is subject to certain conditions, including the final approval of the TSX.V, and is expected to take place on or about October 15, 2010.
A final short form prospectus containing important information relating to the Unit Offering has been filed with the securities commissions or similar authorities in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. The Company expects to receive a receipt for the final short form prospectus in due course and thereafter copies of the final short form prospectus may be obtained from the Corporate Secretary of Great Western Minerals Group Ltd., at 219 Robin Crescent, Saskatoon, Saskatchewan S7L 6M8 (Telephone number: 306-659-4500) and electronically at www.sedar.com.
About Great Western Minerals Group Ltd.
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 has signed an Off-take Agreement for 100% of the Rare Earth Elements produced at the former producing Steenkampskraal mine in South Africa and holds 20.8% ownership in Rare Earth Extraction Co. Ltd, the owner of the Steenkampskraal mine. GWMG also holds interests in seven Rare Earth exploration and development properties in North America.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction. The securities to be issued by the Company pursuant to the Unit Offering have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.
Certain information set out in this News Release constitutes forward-looking information, which may include information relating to estimates of sales and revenue of GWMG. 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 the Company 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 ability of the Company to complete the Unit Offering, risks, uncertainties and other factors that are beyond the control of the Company, 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 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 the Company 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 the Company contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.
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.