Great Western Minerals Announces Option and Joint Venture With Star Minerals on Hoidas Lake Project
December 4, 2013 (Source: Marketwired) — Company Also Announces Resignation of Director George Ireland
Great Western Minerals Group Ltd. (“GWMG” or the “Company”) (TSX VENTURE: GWG) (OTCQX: GWMGF), a leader in the manufacture and supply of rare earth element-based metals and metal alloys and holder of a low cost, high-grade critical rare earth asset (the “Steenkampskraal Project” or “SKK”), announced today that it entered into an option and joint venture agreement with Star Minerals Group Ltd. (TSX VENTURE: SUV) (“Star”) on the Hoidas Lake Project, an area comprised of fourteen mineral claims totaling approximately 12,490 hectares and related property in northern Saskatchewan. As previously announced, GWMG and Star entered into a letter of intent with respect to the joint venture agreement on June 4, 2013.
Marc LeVier, GWMG President and CEO, commented, “This agreement allows us to continue to focus our resources and time on our SKK project, while still moving the Hoidas Lake project forward without committing capital.”
Star has been granted the option, segregated into two tranches, to acquire from GWMG up to a 51% participating interest in the Hoidas Lake Project. The exercise of the first option to acquire a 25% interest is contingent on Star completing an NI 43-101 compliant preliminary economic assessment in respect of the Hoidas Lake Project within two years.
Star has also been granted the option to acquire an additional 26% participating interest, contingent on completing an NI 43-101 compliant feasibility study in respect of the Hoidas Lake Project during the four year period after exercising the first option. All costs and expenses incurred in connection with either option shall be paid by Star.
The obligations of the parties pursuant to the option and joint venture agreement are subject to the satisfaction of certain conditions precedent, including regulatory approval on the part of Star and bondholder approval on the part of GWMG, which the parties intend to obtain in due course.
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GWMG also announced today that George Ireland has resigned as a Director of the Company. Mr. Ireland has served as a Director since April 2012.
Mr. Ireland stated, “It has been a pleasure to work with the entire Great Western team and my fellow Board members. I look forward to following the Company’s progress from the perspective of an investor in both the equity and the debt as they move forward with their business plan to become a leader in the rare earth sector.”
Mr. LeVier said, “We sincerely thank George for his extensive industry experience and insight as we moved the Company forward. His knowledge of the mining sector and capital markets expertise has been of significant value.”
Great Western Minerals Group Ltd. is a leader in the manufacture and supply of rare earth element-based metals and metal alloys. 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 other 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 South Africa. The Company also holds interests in three rare earth exploration properties in North America that are not active.
The Company routinely posts news and other information on its website at www.gwmg.ca.
Email inquiries can also be made to firstname.lastname@example.org.
Neither the 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 the assumptions and estimates in the October 2013 resource estimate and the preliminary economic assessment of the Steenkampskraal project proving to be accurate over time; the construction, commissioning and operation of the proposed monazite processing facility and separation facility within estimated parameters; mine refurbishment activities; 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; 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, including those estimated in the preliminary economic assessment of the Steenkampskraal project; risks associated with the uncertainty of 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 adequacy of the Company’s financial resources and 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 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 Annual Information Form available at www.sedar.com.
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