Welcome to the Great Western Minerals Group HUB On AGORACOM
Great Western Minerals Group Ltd. is a Saskatchewan-based junior exploration company. GWMG is engaged in the acquisition, exploration, and development of rare earth mineral properties in North America.
Message: Announces Private Placement ......C$2,000,000
| February 9, 2009 |
| Great Western Minerals Announces Private Placement |
| SASKATOON, SASKATCHEWAN--(Marketwire - Feb. 9, 2009) - NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE DISTRIBUTION SERVICES Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) announces a non-brokered private placement financing of up to 22,222,222 Units at a price of $0.09 per unit, for total proceeds of up to C$2,000,000 subject to regulatory approval. Each Unit consists of one common share of the company plus one full share purchase warrant. Each full share purchase warrant will be exercisable into one common share of the company, at a price of $0.15 per share. The shares issued under this private placement will be subject to a four month hold period under applicable Canadian securities legislation. The Company plans to use the proceeds for exploration and development of the Company's properties and for general corporate expenses. This placement is expected to close on or about February 24, 2009, at the discretion of the Company. A cash finder's fee of 5% will be paid to authorized agents. It is anticipated that certain officers, directors, or insiders of the company may subscribe for a portion of the private placement. That portion of the private placement that is sold to insiders may be classified as a related-party transaction, as defined in TSX Venture Exchange Policy 5.9. The Company anticipates that it will be able to rely upon exemptions to the shareholder approval and valuation requirements imposed by TSX Venture Exchange Policies in respect of related party transactions. Jim Engdahl, President and CEO of Great Western Minerals Group said "We remain determined to move forward with our mine to market strategy. Even under this challenging economic environment we see little, if any, decline in the demand for rare earth elements. With a growing emphasis on greener technologies and a rapidly increasing demand for rare earth elements, particularly in such sectors as permanent magnet technology, hybrid and electric vehicles, rechargeable batteries, and alternative energy applications, we must remain on track to become a significant source of stable supply of rare earth elements to global industry." Engdahl adds, "We believe that the next commodity cycle, particularly in rare earth elements, will be a long-term powerful one to the upside and we want to continue to work toward being in a position to capitalize on it. This financing is another important step in moving us forward toward that goal." About Great Western Minerals Group Ltd. Great Western Minerals Group Ltd. is a Canadian-based company exploring for, and developing, strategic metal resources in North America. Pursuing a vertically-integrated business model, the Company's wholly-owned subsidiaries of Less Common Metals Limited located in Birkenhead UK, and Great Western Technologies Inc., located in Troy, Michigan, produce a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing aluminum, copper, nickel, cobalt and the rare earth elements. |
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