Great Western Minerals Group Ltd.
OTC Bulletin Board : GWMGF

Great Western Minerals Group Ltd.

July 11, 2005 12:17 ET

Great Western Diamonds Corp. Preliminary Prospectus Filed

SASKATOON, SASKATCHEWAN--(CCNMatthews - July 11, 2005) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (OTCBB:GWMGF): The Company reports that, further to the news release issued March 22, 2005, the Preliminary Long Form Prospectus of Great Western Diamonds Corp. ("GWD"), has been filed. The Initial Public Offering ("IPO"), through First Associates Investments Inc., will raise a maximum of $2.62 million by way of prospectus, for listing on the TSX Venture Exchange, and is structured as follows:

Issuer: Great Western Diamonds Corp.

Gross Proceeds: Up to CDN$2,620,000, of which up to
CDN$1,170,000 will be flow-through funds
eligible for federal tax credits, and
provincial tax credits where applicable.

Offering: Up to 3,900,000 flow-through units ("FT
Unit") and up to 5,800,000 units ("Units").
Each FT Unit shall consist of one
flow-through common share and one-half of one
common share purchase warrant ("Warrant").
Each Unit shall consist of one
non-flow-through common share and one common
share purchase Warrant. Each warrant will
entitle the holder to purchase an additional
non-flow-through common share at a price of
CDN$0.35 per common share for a period of 24

Offering Price: CDN$0.30 per FT Unit.
CDN$0.25 per Unit.

Offering Jurisdictions: British Columbia, Alberta, and Saskatchewan.

The prospectus will also qualify 2,072,000 Special Warrants previously issued by GWD. The Special Warrants are exercisable into common shares of GWD and will be pooled under a voluntary escrow agreement for 6 months from the closing of the offering.

As stated in the March 22, 2005 news release, any decision on, and declaration of, dividend shares will be made subsequent to the public listing. Management recognizes that both the market and technical environment has changed considerably since the IPO process started, largely due to the success of other major diamond projects in Saskatchewan, and will base decisions on those changing factors in conjunction with advice from its professional financial advisors.

Upon successful completion of the IPO, the Company will own approximately 45% of GWD.

The funds will be used to explore and develop the Candle Lake diamond property in Saskatchewan; carry out general diamond exploration on other properties of merit; and for working capital.

Gary L. Billingsley, C.A., P.Eng., P.Geo. President

CUSIP: 39141Y 10 3

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the foregoing contents

Contact Information

  • Great Western Minerals Group Ltd.
    Gordon Dent
    (306) 668-0701
    Great Western Minerals Group Ltd.
    119A Cardinal Crescent
    Saskatoon, SK S7L 6H5