Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

May 04, 2009 07:00 ET

Great Western Minerals Group Ltd. Terminates Exclusivity Provisions

SASKATOON, SASKATCHEWAN--(Marketwire - May 4, 2009) - Great Western Minerals Group Ltd. ("GWMG") (TSX VENTURE:GWG)(PINK SHEETS:GWMGF) announces that it has terminated the exclusive dealing provisions of its non-binding letter of intent (the "Letter of Intent") with Molycorp Minerals, LLC ("Molycorp") dated April 19, 2009.

After discussing a possible loan from Molycorp to GWMG, the parties have been unable to agree on the terms and conditions of such a loan by April 30, 2009 (as first disclosed in the press release of GWMG dated April 20, 2009), and GWMG has therefore elected to terminate its exclusive dealing obligations under the Letter of Intent in accordance with its terms.

Pursuant to the Letter of Intent, Molycorp and GWMG have been in discussions regarding a possible transaction with Molycorp. Although GWMG is no longer obligated to deal exclusively with Molycorp, GWMG's management is continuing discussions with Molycorp with a renewed focus on Molycorp's possible acquisition of GWMG's manufacturing assets.

After the Letter of Intent was announced, GWMG received several unsolicited expressions of interest from third parties regarding GWMG. Jim Engdahl, President of GWMG said "these unsolicited expressions of interest are very encouraging from management's perspective and we intend to explore all possibilities that have the potential to create further synergies and add to shareholder value". Readers are cautioned that the expressions of interest are in a very preliminary stage and no specific terms have been proposed or discussed. There is no assurance that such expressions of interest will result in substantive discussions or any agreement(s).

Great Western Minerals Group Ltd. is a Canadian-based company exploring for, and developing, strategic metal resources in North America and South Africa. 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.

Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of Great Western Minerals Group and Molycorp Minerals, LLC as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to the entering into of a definitive agreement regarding any possible transaction, satisfaction by both parties of any applicable valuation, risks, uncertainties and other factors that are beyond the control of the GWMG or Molycorp, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although GWMG and Molycorp believe that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, they can give no assurance that such expectations will prove to have been correct. The forward-looking statements of GWMG and Molycorp contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Great Western Minerals Group Ltd. in any jurisdiction. The securities of Great Western Minerals Group Ltd. have not been registered under the Securities Act of 1933, as amended (the "1933 Act") and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and applicable state securities laws.

CUSIP: 39141Y 10 3

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Great Western Minerals Group Ltd.
    Mr. Jim Engdahl
    President and Chief Executive Officer
    (306) 659 4508
    Great Western Minerals Group Ltd.
    Ron Malashewski
    Manager of Investor Relations
    (306) 659-4516
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8