October 27, 2011 - Saskatoon, Canada: Great Western Minerals Group ("GWMG" or the "Company") is pleased to announce that it has engaged a syndicate of agents (the "Agents") co-lead by Byron Capital Markets Ltd. and Cormark Securities Inc., and including GMP Securities L.P., to complete a brokered private placement financing, on a best efforts agency basis, of a minimum of $15,000,000 of common shares of GWMG. The pricing of the offered shares will be determined by the Company and Agents in the context of the market.
The Company plans to use the proceeds for the continued development of its Steenkampskraal project in South Africa as well as for general corporate expenses.
GWMG President and Chief Executive Officer Jim Engdahl said, "This financing will move GWMG one more important step toward its goal of being a fully integrated rare earth producer. We have carefully considered the various financing options available and feel an equity financing will provide the Company with the greatest flexibility in the short term. Ensuring we have adequate capital on hand puts our Company in a much stronger position as we continue to evaluate non-dilutive financing mechanisms such as joint ventures/off-take agreements and debt instruments."
Additionally, the Company announces that it has deferred the planned Special Meeting of shareholders originally scheduled for November 22, 2011.
The Company had contemplated a re-confirmation of shareholder approval for undertaking a share consolidation originally approved by shareholders at the Company's Annual General Meeting of August 11, 2010.
Given current global financial market conditions, GWMG has concluded that a share consolidation would not be in the best interests of its shareholders at this time.
GWMG President and Chief Executive Officer Jim Engdahl said, "Our Company evaluated this strategic decision very carefully. A share consolidation can be a catalyst that enables GMWG to fully access a broader capital markets strategy, and on that basis, could be of benefit to shareholders. The current financial market conditions, however, intervened and the Company's assessment was that shareholders' interests would not be served by proceeding at this point."
AI
