Great Western Minerals Announces Option and Joint Venture With Star Minerals on Hoidas Lake Project
04 December 2013 - 10:55PM
Marketwired
Great Western Minerals Announces Option and Joint Venture With Star
Minerals on Hoidas Lake Project
Company Also Announces Resignation of Director George
Ireland
SASKATOON, SK--(Marketwired - Dec 4, 2013) - 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.
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."
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 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 info@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.
For more information contact: Investor Relations: Deborah K.
Pawlowski 716.843.3908 Email Contact Craig P. Mychajluk
716.843.3832 Email Contact
Great Western Minerals (CE) (USOTC:GWMGF)
Historical Stock Chart
From May 2024 to Jun 2024
Great Western Minerals (CE) (USOTC:GWMGF)
Historical Stock Chart
From Jun 2023 to Jun 2024