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: Conversion of Outstanding Debentures
| September 10, 2009 |
| Great Western Minerals Group Announces Conversion of Outstanding Debentures |
| SASKATOON, SASKATCHEWAN--(Marketwire - Sept. 10, 2009) - (NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES) Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) ("GWMG" or the "Company") announced today that it has consented, in accordance with the terms of such debentures, to the sale to third party purchasers of its existing secured convertible debentures originally issued on September 27, 2008, (the "Debentures") having an aggregate principal amount of Pounds Sterling 2,500,000, plus an accrued and unpaid Pounds Sterling 300,000 completion fee plus accrued interest. Furthermore, subject to TSXV approval, the Company has consented to the amendment to the terms of the Debentures to allow for the immediate conversion of the entire principal amount, accrued and unpaid completion fee and outstanding interest of the Debentures into 20,720,425 common shares in the capital of the Company ("Common Shares") in accordance with the pricing set forth in the Debentures. An advisory fee of C$346,653 was paid to Pope & Company Limited of Toronto, which amount was satisfied by the issuance of 1,216,325 Common Shares (the "Finder's Fee"). The securities issued in connection with the Finder's Fee are subject to a four month hold period under applicable Canadian securities legislation. Jim Engdahl, President and CEO of Great Western Minerals Group is extremely pleased with the conversion of the Debentures. Engdahl said, "This transaction is very positive for our Company. It eliminates over Pounds Sterling 2,800,000 of debt obligations from our balance sheet, the associated 10% interest cost, the security attached to it, as well as the potential overhang from the floating conversion price of these Debentures as they approach maturity. The Company's debt obligations are now limited to a working capital line on its cash flow positive and growing processing business, Less Common Metals, and the recently issued C$816,667 convertible debentures. With the clean up of our balance sheet, along with the recent triggering of the early maturity date on our outstanding warrants exercisable at C$0.15, the Company feels it is in a much stronger financial position to further its projects, to take advantage of the growing interest in the rare earth sector and to realize the benefits of our mine to market business model. The Company has been very pleased with its relationship with Pope & Company in advising on the clean up of our balance sheet over the last several weeks." Jim Engdahl, President About Great Western Minerals Group Ltd. Great Western Minerals Group Ltd. is a Canadian-based company with six rare earth exploration and development properties in North America with an option on a sizable additional property in South Africa. In addition, as part of the Company's strategy to pursue 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 copper, nickel, cobalt and the rare earth elements. |
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