Great Western Minerals Group Ltd.
TSX VENTURE : GWG
PINK SHEETS : GWMGF

Great Western Minerals Group Ltd.

December 16, 2008 17:12 ET

Great Western Minerals Group Closes Private Placement With MineralFields Group

SASKATOON, SASKATCHEWAN--(Marketwire - Dec. 16, 2008) -

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") is pleased to announce that it has closed a non-brokered, flow-through private placement with MineralFields Group.

The Company issued a total of 8,333,333 Units at a price of C$0.06 per unit, for total proceeds of C$500,000. Each Unit consists of one flow-through common share of the Company plus one-half share purchase warrant. Each full share purchase warrant will be exercisable into one non-flow-through common share of the company, at a price of C$ 0.20 per share for a period of twenty four months following the close of this transaction.

Limited Market Dealer Inc.® received a 3% cash finder's fee, a 1.5% finder's fee in the form of units, and a two-year, non-transferable option to acquire up to an additional 500,000 non-flow-through units. Each of the finder's units will consist of one share and one-half share purchase warrant. Each full share purchase warrant will be exercisable into one common share of the company, at a price of C$ 0.20 per share for a period of twenty four months following the close of this transaction. During the first year of the term of this option, the exercise price of the option will be C$0.06 and will increase to C$0.10 during the second year. HSBC Securities received a 1% cash finder's fee, a 0.5% finder's fee in the form of finder's units, and a two-year, non-transferable option to acquire an additional 166,666 units on the same option terms and conditions noted above.

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 very pleased to be renewing our relationship with MineralFields Group", said Jim Engdahl, President and CEO of Great Western Minerals Group. Engdahl adds, "This is an important milestone in the growth of Great Western Minerals Group Ltd. and we look forward to working with MineralFields Group as we continue to develop our properties and advance our mine-to-market strategy."

Jim Engdahl, President

About MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.

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 copper, nickel, cobalt and the rare earth elements.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction. The securities to be issued pursuant to the Offering by the Company have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

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

Contact Information

  • Great Western Minerals Group Ltd.
    Ron Malashewski
    Manager of Investor Relations
    (306) 659-4500
    or
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8
    Email: info@gwmg.ca
    Website: www.gwmg.ca