Great Western to accelerate option for Red Wine rare earth joint venture

Great Western Minerals (CVE:GWG) announced plans Tuesday to accelerate its option to acquire a 50% interest in the rare earth element-containing Red Wine property, controlled by Search Minerals (CVE:SMY), creating a joint venture between the two companies.
Under the terms of the option agreement, which was signed in late July 2010, Great Western is required to make cash and share payments to Search, and fund expenditures as part of a work commitment. The end of the option term was originally expected at the end of April 2012.
To date, Great Western has paid Search $125,000 in cash and 550,000 shares, and has contributed $1.45 million in expenditures for work commitment on the property. The Saskatoon, Saskatchewan-based company also funded a $50,000 metallurgical program on the site, fulfilling its work commitment obligations.
To complete the option and acquire its 50% interest, Great Western must issue an additional 500,000 shares to Search and make a final $100,000 cash payment. Upon the completion of this payment, the 50-50 joint venture will have been formed.
The Red Wine property is located about 100 kilometres north of Churchill Falls in Labrador and contains 301 claims on 7,525 hectares. Exploration in 2010 revealed total rare earth elements of 1.59% over 4.0 metres, with consistent heavy rare earth element enrichment in all samples of 35% or higher, among other positive results.
"The 2010 exploration program discovered a number of new Rare Earth showings with a high percentage of Heavy Rare Earth Elements," said Great Western president and CEO, Jim Engdahl.
"That, plus the encouraging drill results from the Cabernet drilling program, has encouraged GWMG to move ahead with the formation of the Joint Venture."