/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
TSX Venture Symbol: GWG
USA Symbol: GWMGF
CUSIP: 39141Y 10 3
SASKATOON, Aug. 15 /CNW/ - Great Western Minerals Group Ltd. ("GWMG" or
the "Company") is pleased to announce that it has closed the previously
announced brokered private placement financing of 24,437,500 units (the
"Units") at a price of $0.40 per Unit, for total gross proceeds of $9,775,000
(the "Private Placement"). Each Unit consists of one common share of the
Company (each a "Common Share") and one Common Share purchase warrant (each a
"Warrant"). Each Warrant entitles the holder to purchase one Common Share at a
price of $0.55 for a period of 24 months after the issuance of the Units.
The offering was led by PowerOne Capital Markets Limited ("PowerOne")
(collectively, the "Agents"). The Agents received a cash commission of 7% of
the gross proceeds of the Private Placement and non-transferable broker
warrants in an amount equal to 8% of the number of Units sold pursuant to the
Private Placement (the "Broker Warrants"). Each Broker Warrant entitles the
holder to purchase a unit of the Company (the "Broker Units") at a price of
$0.40 for a period of 24 months after the issuance of the Broker Warrants,
with each Broker Unit consisting of one Common Share and one non-transferable
broker unit warrant (each a "Broker Unit Warrant"). Each Broker Unit Warrant
entitles the holder to purchase one Common Share at a price of $0.55 for a
period of 24 months after the issuance of the Broker Warrants.
The Common Shares, the Warrants and the Broker Warrants are subject to a
four month hold period, in accordance with applicable securities legislation.
"GWMG has now completed its first brokered major financing that will
allow the Company to move forward in achieving our goal of becoming a fully
integrated "Mines to Market" Rare Earth Elements company. This capital gives
us the financial resources to move forward and achieve proper shareholder
value for all our assets, including our Copper Hill and Chuckwalla properties
in the U.S. and, at the same time, allows us to stay focused on our Rare Earth
Projects in Canada and in the U.S." says Jim Engdahl, President and CEO.
The Company 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 rare
This news release shall not constitute an offer to sell or the
solicitation of any offer to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful. The shares offered will not be and have not been registered under
the United States Securities Act of 1933, as amended (the "U.S. Securities
Act") and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of the U.S.
Securities Act and applicable state securities laws.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Ron Malashewski, Manager of Investor Relations
at (306) 668-0701. Email inquiries should be made to firstname.lastname@example.org and the
company website is located at www.gwmg.ca. Inquiries by direct mail should be
addressed to Great Western Minerals Group Ltd., 226 Cardinal Crescent,
Saskatoon, SK S7L 6H8.