Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

July 13, 2007 13:38 ET

Great Western Minerals Group Ltd.: Private Placement Arranged

SASKATOON, SASKATCHEWAN--(Marketwire - July 13, 2007) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG)(PINK SHEETS:GWMGF) ("GWMG" or "the Company") is pleased to announce that it has entered into an agreement (the "Agreement") with PowerOne Capital Markets Limited ("PowerOne") pursuant to which PowerOne has agreed to offer on a best-efforts private placement basis (the "Offering") up to 25,000,000 units of the Company at $0.40 per unit for aggregate gross proceeds of a maximum of $10,000,000. Each unit consists of one common share of the Company and one common share purchase warrant. Each common share purchase warrant is exercisable for one common share of the Company at a price of $0.55 for a period of 24 months after the closing of the Offering.

The net proceeds of the Offering would be targeted to completing the Preliminary Economic Assessment at Hoidas Lake, construction and operation of a pilot plant facility and moving the project through to final feasibility and a production decision.

The Agreement and the Offering are subject to receipt of all necessary approvals, including regulatory and stock exchange approvals. The closing of the Offering is expected to occur on or about July 31, 2007.

"We are pleased to be working with PowerOne and appreciate their commitment to help us advance the Hoidas Lake project through to a production decision" says Jim Engdahl, President.

The Company is also actively investigating other rare earth properties in North America that have rare earth element distributions complimentary to those at Hoidas Lake, and is actively working on grassroots copper, gold and molybdenum properties in the United States.

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 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 the rare earth elements.

Jim Engdahl, President

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