GREAT WESTERN MINERALS GROUP ANNOUNCES PROPOSED SECURED CONVERTIBLE BOND FINANCING
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES March 14, 2012 - Saskatoon, Canada: Great Western Minerals Group Ltd. ("GWMG" or the "Company", TSX:V - GWG) is pleased to announce that it has engaged GMP Securities L.P. and ISM Capital LLP, as co-lead agents, along with Byron Capital Markets Ltd. (collectively, the " Agents") to act as its exclusive Agents in connection with its intention to offer (the "Offering") secured convertible bonds (the "Bonds").
The Bonds will become due five years from issuance and will
be convertible into common shares of GWMG ("GWMG
Shares") at a conversion rate yet to be determined. The
most recent closing price of the GWMG Shares was $0.55.
The net proceeds of the proposed Offering are intended to be
used by the Company as follows: (i) to complete a technical
report on the Company's Steenkampskraal property in
accordance with National Instrument 43-101 -Standar Standards
of Disclosure for Mineral Projects; (ii) to advance the
development of the Company's Steenkampskraal operation;
(iii) for the construction of the Company's monazite
processing facility; (iv) for the construction of the
Company's separation facility; (v) for equipment
purchases and expansion of Less Common Metals Limited; and
(vi)
for general working capital purposes.
GWMG President and Chief Executive Officer Jim Engdahl said,
"The proposed secured convertible bond financing is a
transformational event for the Company and is key to the
completion of the next steps of the Company's development.
Execution of the Company's strategic business plan
involves the Company becoming a first mover in the rare earth
industry and completing its fully integrated business model.
This strategy has been central to the Company's focus
and we are extremely pleased to be working with GMP, ISM and
Byron on this offering."
Concurrently, GWMG is pleased to announce the appointment of
Robert Gilmore and George Ireland to the
Company's Board of Directors, subject to regulatory
approval.
Mr. Robert Gilmore has been chairman of Eldorado Gold
Corporation since 2009, having served on the board as an
independent director since 2003 and as chairman of the audit
committee since 2004. He also serves on the board of Fortuna
Silver Mines. Mr. Gilmore, a Certified Public Accountant and
financial consultant, is a graduate of the University of
Denver with a Bachelor of Science degree in Business
Administration, Accounting. He has been the chief financial
officer of Dakota Mining Corporation and Teamshare Inc. Mr.
Gilmore, a member of the Colorado Society of Certified Public
Accountants and the American Institute of CPAs, has more than
30 years of experience working with resource companies.
Mr. George Ireland serves as chief investment officer and
managing member of Geologic Resource Partners LLC as well as
portfolio manager of Geologic Resource Funds. Mr. Ireland has
30 years of experience in all aspects of the resource sector,
ranging from field geology through to banking and corporate
finance. In addition to having worked in the most senior
positions with several firms in the resource sector he has
served as a director with companies that include Blue Wolf
Mongolia Holdings Corp., Peru Copper Inc., Geoinformatics
Exploration Inc., Kiska Metals Corporation and Uranium
Resources Inc. Mr. Ireland graduated from Philips Academy and
the University of Michigan with degrees in Resource Economics
and Geology. He also attended the Graduate School of Business
Administration
of New York University.
GWMG Executive Chairman Gary Billingsley said, "GWMG is
very pleased to be able to attract such highly qualified
Board members to our company. The significant resource sector
backgrounds of Robert Gilmore and George Ireland will further
strengthen our team at GWMG. We are very confident that the
addition of these independent directors will serve our
shareholders' interests exceptionally well."
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 aluminum,
nickel, cobalt and 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 owns a 74% equity interest in the Steenkampskraal Mine.
In addition to an exploration program at Steenkampskraal,
GWMG also holds interests in four active Rare Earth
exploration and development properties in North America.
For further information, please contact Dwight Percy, Manager
of Investor Relations at (306) 659-4516. Email inquiries
should be made to info@gwmg.caand the
company website is located at www.gwmg.ca. Inquiries by direct
mail should be addressed to Great Western Minerals Group
Ltd., 219 Robin Crescent, Saskatoon, SK S7L 6M8.
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.
The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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 successful completion of the Offering, the construction, commissioning and
operation of the proposed monazite processing facility and separation facility, mine refurbishment activities, reliance on third parties to meet projected timelines, the results of the exploration program at Steenkampskraal, completion of a resource estimate and commencement of production at Steenkampskraal, satisfaction of the conditions precedent with respect to GWMG's offtake agreement, receipt of all required approvals (including those relating to the commencement of production at the Steenkampskraal mine, environmental matters, water and land use) and risks, uncertainties and other factors that are beyond the control of GWMG, 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 or resource 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 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. 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 current annual information form available wawtw.sedar.com.