Great Western Minerals Provides Corporate Update
SASKATOON, SK--(Marketwired - Jan 21, 2014) - Great Western
Minerals Group Ltd. (TSX-VENTURE: GWG) (OTCQX: GWMGF)
- Don R. Siemens appointed to the Board of
Directors
- Bondholders approve Hoidas Lake Project joint
venture
- CIBC retained as financial advisor
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"), today announced that Don R.
Siemens was appointed as an independent director of GWMG, effective
January 20, 2014. With Mr. Siemens appointment, the Company's
Board of Directors now consists of six directors, including four
independent directors.
Robert Quinn, Chairman of the Board of GWMG, commented, "Don is
a seasoned executive who adds a wealth of corporate finance
experience to the Board. We believe he will be an extremely
valuable resource to the Company going forward."
Mr. Siemens has more than 30 years of experience as a Chartered
Accountant, including eight years in public practice as a partner
with major accounting firms. He also has extensive experience
in senior executive positions and has served on a number of public
boards. He currently is a financial advisor specializing in
corporate finance, reorganizations and mergers and
acquisitions.
Marc LeVier, Company President and CEO, noted, "Over the past
year we further defined our objectives and have made measurable
progress toward our vertical integration strategy. We believe
our world-class manufacturing service operation at LCM and the SKK
project have significant long-term potential and today's
announcements further support our plan as we move
forward."
Bondholders overwhelmingly support Company decision to focus
resources on core SKK project with approval of the Hoidas Lake
Project joint venture
On January 20, 2014, a special meeting of holders of the $90.0
million secured convertible bonds was held to consider the Hoidas
Lake Project joint venture agreement dated effective December
3, 2013 between the Company and Star Minerals Group Ltd
(TSX-VENTURE: SUV) ("Star"). 71.5% of the outstanding bonds
were represented at the meeting, 100% of which were voted in favor
of approving the joint venture.
Pursuant to the agreement, 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.
CIBC retained to assist with financing
The Company has retained CIBC World Markets Inc. ("CIBC") as its
exclusive financial advisor to assist in the development of capital
structure and financing options for the SKK project.
Mr. LeVier stated, "CIBC, with their significant experience,
will help us evaluate and pursue financing alternatives that will
benefit our Company and our stakeholders."
GWMG has not made any decision to enter into a transaction, and
there can be no assurance that it will enter into a transaction in
the future. GWMG does not plan to disclose or comment on
developments regarding CIBC's work until it is complete or until
further disclosure is appropriate.
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
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