Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

April 01, 2010 16:15 ET

Great Western Minerals Group and Toyota Tsusho Corporation Allow Letter of Intent to Expire

SASKATOON, SASKATCHEWAN--(Marketwire - April 1, 2010) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) and Toyota Tsusho Corporation (Tokyo Stock Exchange - "8015T"; Nagoya Stock Exchange - "8015NG"), announced today that Toyota Tsusho Corporation ("TTC"), will not be proceeding with further exploration activities at the Douglas River and Benjamin River properties currently held by Great Western Minerals Group Ltd. ("GWMG" or the "Company") at this time.

Under the terms of the original Letter of Intent, TTC and GWMG discussed possibilities for the joint exploration and development of the Douglas River and Benjamin River exploration projects.

TTC has advised GWMG that, although TTC recognizes the potential for these properties, the current stage of development is too early to meet TTC's needs as a trading company, as further technical and analytical information are required. As a result, the Letter of Intent was allowed to expire on March 31, 2010.

However, at the request of TTC, GWMG will continue to provide TTC with further relevant technical information on these projects, as well as other projects, subject to any restrictions imposed by subsequent letters of intent or confidentiality agreements.

TTC has also offered to refer the Douglas River project to a third party, a diversified minerals and metals organization, for consideration of additional work. GWMG has taken TTC up on their offer and will follow up on any opportunities presented.

In addition, GWMG may discuss these projects with other potential partners who had previously expressed an interest in working on these projects with GWMG, in the event that TTC declined the opportunity.

Jim Engdahl, President and CEO of Great Western Minerals Group said "We fully understand Toyota Tsusho's decision on this matter, in view of the properties' early stage of development, and we sincerely appreciate their initial interest in these projects. However, we do look forward to continuing to work with other members of the Toyota Group of Companies with our downstream value added production facilities."

Engdahl adds, "We now have the opportunity to discuss these projects, particularly the Douglas River project with other interested parties. The initial results, showing a high content of heavy rare earth elements, have drawn additional attention to this project."

Jim Engdahl
President and CEO

Great Western Minerals Group Ltd. is a Canadian-based developer of Rare Earth Element assets, with four active rare earth exploration properties in North America and an option on a former-producing property in South Africa. In addition, as part of its 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 aluminum, nickel, cobalt and the rare earth elements.

Cautionary Statement on Forward-Looking Information: 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) are based upon the opinions, expectations and estimates of management of the Company 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. Readers are cautioned not to place undue reliance upon forward-looking information. Although the Company believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. 

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.
    Ron Malashewski
    Manager of Investor Relations
    (306) 659-4500
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8