Great Western Minerals Group Ltd.
TSX VENTURE : GWG
OTC Bulletin Board : GWMGF

Great Western Minerals Group Ltd.

November 08, 2006 10:38 ET

Great Western Minerals Group Ltd.: Financing Arranged

SASKATOON, SASKATCHEWAN--(CCNMatthews - Nov. 8, 2006) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (OTCBB:GWMGF) -

Jim Engdahl, President, is pleased to report that D&D Securities Company has been engaged to act as exclusive agents, on a best efforts basis, in a brokered private placement. The financing will raise a maximum of $10 million by way of Subscription Agreement pursuant to exemptions from prospectus requirements in the Offering Jurisdictions, and will be structured as follows:



Issuer: Great Western Minerals Group Ltd.

Gross Proceeds: Up to CDN$10,000,000 of which up to CDN$6,000,000
will be flow-through funds eligible for federal
and provincial income tax deductions and credits,
where applicable.

Offering: Up to 10,900,000 flow-through units ("FT Units")
and up to 9,300,000 non-flow-through units ("NFT
Units"). Each FT Unit shall consist of one
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 $0.70 per common
share for a period of 24 months. Each NFT Unit
shall consist of one common share and one common
share purchase warrant. Each warrant will entitle
the holder to purchase an additional common share
at a price of CDN $0.60 per common share for a
period of 24 months.

Offering Price: CDN$0.50 per Flow-through Unit.
CDN$0.43 per Non-flow-through Unit.

Offering Jurisdictions: British Columbia, Alberta, Saskatchewan and Ontario
and any other jurisdictions on which the parties
agree.

Closing: November 30, 2006 or such earlier or later date
agreed to by the parties.


Proceeds of the financing will be used to advance the Company's 100%-owned Hoidas Lake rare earth project through to a bankable feasibility study and for general working capital.

James Engdahl, 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.
    Gord Dent
    (306) 668-0701
    Email: info@gwmg.ca
    Website: www.gwmg.ca
    or
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8