Great Western Minerals closes $200,000 financing

2008-12-30 18:50 ET - News Release

Mr. Jim Engdahl reports

GREAT WESTERN MINERALS GROUP CLOSES PRIVATE PLACEMENT WITH 49 NORTH RESOURCE FUND

Great Western Minerals Group Ltd. (GWMG) has closed a non-brokered, flow-through private placement with 49 North Resource Fund Inc., of Saskatoon.

The company issued a total of 3,333,333 units at a price of six cents per unit, for total proceeds of $200,000. Each unit consists of one flow-through common share of the company plus one-half a share purchase warrant. Each full share purchase warrant will be exercisable into one non-flow-through common share of the company, at a price of 20 cents per share, for a period of 24 months following the close of this transaction.

RMG Technologies Corp. received a $12,000 cash finder's fee and 266,666 finder's warrants. Each finder's warrant will be exercisable into one common share of the company, at a price of 20 cents per share, for a period of 24 months following the close of this transaction.

The proceeds of this financing will be used for exploration and development of the company's properties. These expenses will constitute Canadian exploration expenses (as defined in the Income Tax Act) and such expenses will be renounced for the 2008 taxation year. The shares issued under this private placement will be subject to a four-month hold period under applicable Canadian securities legislation.

"We are pleased to have the continued participation of 49 North Resource Fund as an investor in GWMG. The fund has been a strong supporter of GWMG for many years, as we continue to implement our mine-to-market strategy with the further development of our resource properties."