Great Western Minerals Group (CVE:GWG) (OTCQX:GWMGF) announced Thursday that it has received funds, from its previously announced offering of secured convertible bonds, of about US $63.2 million.
The company noted that the funds were released from escrow on
Wednesday, save roughly US $10.8 million that remains in escrow to
satisfy interest payments.
Shares in the company were up 2.67 per cent late Thursday afternoon, trading at 38.5 cents.
With the filing of its NI 43-101 report last week, Great Western Minerals Group (GWMC) satisfied the escrow release condition of the remaining convertible bond financing – that totalled US$90 million.
In order to satisfy the condition, the company had to confirm at
least 20,000 metric tonnes of TREO, including yttrium, from the
measured, indicated and inferred categories using a one per cent cut-off
"The receipt of funds under the offering enables GWMG to
continue the development of the Steenkampskraal project and Less Common
Metals in a manner that positions our Company be an 'early mover' in the
rare earth sector outside of China,” said president and CEO Jim
“To have successfully raised gross proceeds of US $90
Million in today's global financial climate illustrates significant
investor confidence in the ability of GWMG to execute its business plan
and become 'our own rare earth supplier to our own downstream
Immediately upon closing the offering on April 5, 2012, GWMG received US$10 million.
is an integrated rare earths processor that 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 makes specialty alloys, which are used in the battery, magnet and aerospace industries.
at GWMG’s wholly owned subsidiaries Less Common Metals in Birkenhead,
U.K. and Great Western Technologies in Troy, Michigan, these alloys
contain aluminum, nickel, cobalt and rare earth elements.
Its development program at Steenkampskraal is central to ensure a
strong flow of feedstock for its downstream processing - the company
intends to be one of the first to produce significant quantities of the
more valuable heavy rare earth oxides, which are important materials for
Last week, the company announced its initial NI 43-101 resource
estimate for Steenkampskraal, which satisfied the release conditions for
the funds released today.
The integrated rare earths company said it filed the estimate and technical report on SEDAR.
The company noted that the NI 43-101 report indicates the presence of
13,823.64 metric tonnes of total rare earth oxides (TREO), including
yttrium, under the indicated resource category, and 14,147.76 metric
tonnes under the inferred resource category, each using a one per cent
The database provided to Snowden Mining Industry Consultants for the
resource estimate at Steenkampskraal, consisted of 67 diamond drill hole
samples, of which only 26 drill holes contained assay data, and 67
underground channel samples, of which only 35 contained assay data.
The database provided for the evaluation of the tailings dams comprised information from 151 drill samples.
The rare earths company, which eventually plans to be its own
supplier as well as creating a supply certainty for global customers,
has several operational targets this year aside from the NI 43-101
report released last week, including the refurbishment of the mine shaft
at Steenkampskraal in the first half of this year.
GWMG has said it is on track for this target, as well as for the
launch of mining activities by the end of 2012, and the construction of a
mixed chloride plant and separation plant near Steenkampsraal in the
first half of 2013.
The company also holds 100 per cent equity ownership in Rare Earth
Extraction Co., which owns a 74 per cent equity interest in the
In addition to an exploration program at
Steenkampskraal, GWMG also holds interests in four active rare earth
exploration and development properties in North America.
The company is boosting capacity in preparation for its rare earths
production coming online, and as demand for the metals continues to
grow, and as China increasingly restricts exports.