Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

December 10, 2007 16:26 ET

Great Western Minerals Announces Private Placement for Further Exploration and Construction of Pilot Plant

SASKATOON, SASKATCHEWAN--(Marketwire - Dec. 10, 2007) -


Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) ("GWMG" or the "Company") is pleased to announce a non-brokered private placement financing of up to 7,500,000 Common Flow-Through Shares at $0.40 per Common Share, subject to regulatory approval. The proceeds of this placement will be used to fund the Company's recently announced drilling program at the Hoidas Lake Rare Earth Element (REE) Project in Northern Saskatchewan, and to begin construction of a pilot plant in 2008.

These Common Shares will be subject to a four month hold period, in accordance with applicable securities legislation. This placement is expected to close on December 18, or sooner at the discretion of the Company. A cash finder's fee of up to 5% will be paid to accredited 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 says, "We have compelling reasons to accelerate our exploration programs on our rare earth properties. There is strong interest and encouragement in the rare earth industry to conduct further drilling at Hoidas Lake with the goal of increasing the tonnage on that property. This financing will allow us to do that without altering our exploration budget for our Deep Sands Project in Utah."

Endgahl adds, "The pilot plant will be another important step forward in our strategy. Current metallurgical testing is being conducted on kilogram-sized rock samples with excellent results. The pilot plant program will determine if similar low-cost metal recoveries can be obtained with rock samples consisting of several tonnes, and determine the feasibility of successfully applying that metallurgical process to a full-scale operation. Data obtained from the pilot plant program will then be used in the final feasibility study for Hoidas Lake."

Great Western Minerals Group 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 subsidiary Great Western Technologies Inc., located in Troy, Michigan, produces a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and rare earth elements.

James Engdahl, President

Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

CUSIP: 39141Y 10 3

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Great Western Minerals Group Ltd.
    Ron Malashewski
    Manager of Investor Relations
    (306) 668-0701
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK
    S7L 6H8