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

Great Western Minerals Group Ltd.

August 15, 2007 12:36 ET

Great Western Minerals Group Ltd. Closes Private Placement

SASKATOON, SASKATCHEWAN--(Marketwire - Aug. 15, 2007) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) ("GWMG" or the "Company") is pleased to announce that it has closed the previously announced brokered private placement financing of 24,437,500 units (the "Units") at a price of $0.40 per Unit, for total gross proceeds of $9,775,000 (the "Private Placement"). Each Unit consists of one common share of the Company (each a "Common Share") and one Common Share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.55 for a period of 24 months after the issuance of the Units.

The offering was led by PowerOne Capital Markets Limited ("PowerOne") (collectively, the "Agents"). The Agents received a cash commission of 7% of the gross proceeds of the Private Placement and non-transferable broker warrants in an amount equal to 8% of the number of Units sold pursuant to the Private Placement (the "Broker Warrants"). Each Broker Warrant entitles the holder to purchase a unit of the Company (the "Broker Units") at a price of $0.40 for a period of 24 months after the issuance of the Broker Warrants, with each Broker Unit consisting of one Common Share and one non-transferable broker unit warrant (each a "Broker Unit Warrant"). Each Broker Unit Warrant entitles the holder to purchase one Common Share at a price of $0.55 for a period of 24 months after the issuance of the Broker Warrants.

The Common Shares, the Warrants and the Broker Warrants are subject to a four month hold period, in accordance with applicable securities legislation.

"GWMG has now completed its first brokered major financing that will allow the Company to move forward in achieving our goal of becoming a fully integrated "Mines to Market" Rare Earth Elements company. This capital gives us the financial resources to move forward and achieve proper shareholder value for all our assets, including our Copper Hill and Chuckwalla properties in the U.S. and, at the same time, allows us to stay focused on our Rare Earth Projects in Canada and in the U.S." says Jim Engdahl, President and CEO.

The Company 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

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
    Email: info@gwmg.ca
    or
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8
    Website: www.gwmg.ca