EDITOR: | April 8th, 2014 | 13 Comments

Great Western Minerals Enters Into Memorandum of Understanding for REE Separation Services

| April 08, 2014 | 13 Comments
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April 8, 2014 (Source: Marketwired) — 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 that it has entered into a non-binding memorandum of understanding (“MOU”) with an internationally recognized provider for REE separation services. The MOU also calls for ongoing technical support as the Company reviews and advances the design of its planned production facilities at SKK.

Marc LeVier, Company President and CEO, commented, “It has been our objective to look at all alternatives that can get us to production sooner, lower upfront capital requirements and reduce project risk at SKK. This initial agreement sets in place the framework and commitment to continue discussions toward a comprehensive toll separation agreement for future SKK production. Completion of the MOU and the subsequent contract are substantial steps forward in fulfilling the mine to metal vision.”

The Company will continue to move permitting forward for its proposed separation plant at Vredendal in the Western Cape of South Africa for possible future consideration.

About GWMG

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 subsidiary, Less Common Metals Limited in Ellesmere Port, U.K., 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.

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.

Cautionary Statement

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.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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Comments

  • Motherearth

    This is great news for GWG, I wish Jack would charm in here and give us his guess on who the toller might be. Solvay?

    April 8, 2014 - 10:48 AM

    • Veritas Bob

      Wait, there’s even better news!!!

      ‘Great Western Minerals Group (“GWMG”) is pleased to announce that it has negotiated a Heads of Terms with Ganzhou Qiandong Rare Earth Group Ltd. (“GQD”) of China to build a Rare Earth separation plant in South Africa, located in proximity to GWMG’s Steenkampskraal operation.’

      Oh wait, did I forget to mention that this was from a Great Western News Release on July 25, 2011? As for the tolling MOU, I would hold off any celebrations until you see a completed deal, and examine and understand its terms.

      April 8, 2014 - 11:18 AM

      • hackenzac

        Not news, infotainment. It’s fun stuff, all this guessing. GWG figured out that they can sell clicks just like they do here at ii. Clicks are the currency when you’re in the news AND entertainment business. I know I’m amused. It’s another round of guess between the lines!

        April 8, 2014 - 2:04 PM

  • Motherearth

    VB whats your problem? Tracy won’t allow the Fword so I’ll just say take a hike.

    April 8, 2014 - 11:29 AM

    • Veritas Bob

      If Great Western keeps on announcing deals, plans, plans for deals, deals for plans, etc., eventually one or more of them may come true. If you wish to take every MOU announcement as being great news, and perhaps the salvation for the company, then that is your right. I have a rather more skeptical point of view, whose expression apparently does not comport with your sense of what is appropriate commentary.

      April 8, 2014 - 4:59 PM

      • vb

        VB, you are the only voice in the space with any credibility. Don’t be cowed, as you are obviously not, by the frustrated ravings of the cheerleading suborned. I am only writing here after long-suffering witness to the broadside browbeating insults you suffer for telling the truth, wittily and graciously. Then you are assailed by chagrined illiterates and accused of having a “problem”. If it wasn’t for you, the readership on this site would be cut in half. Veritas veritas veritas. Thank you.

        April 8, 2014 - 7:58 PM

        • bopkiwi

          Takes a tosser to know a tosser I suppose!!

          April 8, 2014 - 9:48 PM

        • Veritas Bob

          Truth is not a democracy.

          April 11, 2014 - 9:23 PM

      • hackenzac

        Notice that they are looking for a toll facility, not theirs, but near their mine, not in China even though the Chinese have much excess capacity. This tells us one thing. The ore is too hot for export if not legally, it is politically. They need their own separation close by. It’s a former thorium mine. Duh. Then there’s that “leading to a “subsequent contract””language. As VB points out, we thought they had one. GQD, what happened that that one?

        April 9, 2014 - 12:50 PM

    • Veritas Bob

      In http://investorintel.wpengine.com/rare-earth-press/chinas-grip-rare-earths-seen-tightening-antaike/#comment-235506 , Motherearth wrote “Bankruptcy for Lynas could be sooner than we think?”

      So if I understand correctly, “disparaging” remarks are allowed about Lynas, and perhaps others of Great Western’s competitors in which Mothereasrth does not have a financial position, but anyone expressing skepticism (by referencing relevant history) at Motherearth’s unbridled enthusiasm (a.k.a. “pumping”) over an announcement by Great Western is worthy of being the subject of vulgarities. Thank you for clarifying, and demonstrating by example, proper commenting etiquette.

      April 9, 2014 - 10:37 PM

  • bourque

    Jack had said something to the effect of better to pause/rest and climb the mountain slowly and get there rather than to rush it, make mistakes and burn out before ever reaching the top. MCP and LYC come to mind?

    April 8, 2014 - 1:09 PM

    • Tim Ainsworth

      Perhaps if punters weren’t so fixated on MoU’s they might have noticed Lynas’s March Q update, April 1, lol.
      “Based on the continuing and accelerating improvement in performance in all operational areas, Lynas management is confident of achieving the targeted production run rate of 11,000tpa REO from the LAMP on a sustainable basis during the June 2014 quarter.
      Mr Noyrez also noted that at current prices, the Company expects to be operating cash flow neutral at a monthly sales rate of around 750 tonnes REO.”
      Appears to have been overlooked here, doesn’t quite sound like a corpse as yet.

      April 10, 2014 - 8:48 AM

  • aurelius

    The Hackenzac, Veritas, vb, have been the daily bashers operating under different names, Derm among others, on the GWG blog for years and they never let up. They are pathological cases, but some day we’ll know more.

    April 9, 2014 - 3:30 AM

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