Great Western Minerals (CVE:GWG) said late Wednesday that it plans to launch a secured convertible bond financing, with GMP Securities and ISM Capital as co-lead agents.
The bonds will be due five years from issuance and will be
convertible into common shares of Great Western at a conversion rate yet
to be determined, the company said.
The most recent closing price of the company's shares was $0.55.
The new funds from the offering will be used by the company to
complete an NI 43-101 compliant technical report on the company's
Steenkampskraal mine in South Africa, and to advance the development of
The funds will also be used to construct the company's monazite
processing facility and rare earths separation facility as well as for
the expansion of its processing subsidiary Less Common Metals and for
general working capital purposes.
Saskatoon- headquartered Great Western Minerals is well on its way to
becoming a fully integrated rare earth company as it combines upstream
resource exploration and extraction at its Steenkampskraal mine in South
Africa with downstream metals processing facilities in the US and UK.
The company is working on completing an NI 43-101 compliant report
for the Steenkampskraal mine to confirm historical data and expand the
size of the resource, expected in the first half of this year.
In January, the company also inked a joint venture deal with China's
Ganzhou Qiandong Rare Earth Group for the construction of a rare earth
separation plant nearby the South African property.
"The proposed secured convertible bond financing is a
transformational event for the company and is key to the completion of
the next steps of the company’s development," said president and CEO Jim
"Execution of the company's strategic business plan involves the
company becoming a first mover in the rare earth industry and completing
its fully integrated business model.
"This strategy has been central to the company's focus and we are
extremely pleased to be working with GMP, ISM and Byron on this
Separately, Great Western said Wednesday that it has appointed Robert
Gilmore and George Ireland to its board of directors, subject to
Gilmore has been chairman of Eldorado Gold
(TSE:ELD) since 2009, having served on the board as an independent
director since 2003 and as chairman of the audit committee since 2004.
He has more than 30 years of experience working with resource companies.
Ireland serves as chief investment officer and managing member of
Geologic Resource Partners LLC as well as portfolio manager of Geologic
Resource Funds, and also has 30 years of experience in all aspects of
the resource sector, ranging from field geology through to banking and
corporate finance. Ireland has served as a director with companies that
include Blue Wolf Mongolia Holdings, Peru Copper, Geoinformatics
Exploration, Kiska Metals and Uranium Resources.
Executive chairman, Gary Billingsley, added: "GWMG is very pleased to
be able to attract such highly qualified board members to our company.
"The significant resource sector backgrounds of Robert Gilmore and
George Ireland will further strengthen our team at GWMG. We are very
confident that the addition of these independent directors will serve
our shareholders' interests exceptionally well."
Great Western's specialty alloys are used in the battery, magnet and
aerospace industries and are produced at the company's subsidiaries,
Less Common Metals in Birkenhead, U.K. and Great Western Technologies in
The company also holds 100 percent equity ownership in Rare Earth
Extraction Co. Limited, which owns a 74 percent equity interest in the
Steenkampskraal Mine. Aside from this, Great Western holds interests in
four rare earth exploration and development properties in North America.