Great Western Minerals to raise up to C$7 million to expand its specialty alloys operations

Great Western Minerals is planning to raise gross proceeds of up to $7 million, subject to a 15% over-allotment option, at an issue price of $0.28 per Unit.  Each Unit will consist of one common share and one-half of one common share purchase warrant.

Each Warrant will entitle its holder to purchase one additional Common Share for $0.50 and will expire 60 months after the date of the closing of the Offering.

Great Western said it plans to use the capital to the purchase new equipment needed to expand product offerings at its subsidiary, Less Common Metals, in England, to provide additional working capital, and to conduct further exploration activities.

Jim Engdahl, President and CEO of Great Western Minerals Group said, "With the global recession coming to an end, we've had a significant increase in demand for products from Less Common Metals and Great Western Technologies. Even more encouraging, we've also had requests to expand our range of products to include strip-casting and metal-making.  As a result, we will use some of this capital to purchase additional equipment needed to expand our range of products. The addition of these new products has the potential to significantly increase our production output with a corresponding boost to our bottom line. If all goes as expected, we could have this new production on line in Q1 2011."

Engdahl adds, "This financing will also allow us to further improve our balance sheet. Last year, we paid out the long-term debt we took on when we acquired LCM. Now we will be in a position to provide additional working capital to further support the growth opportunities for LCM. These opportunities, combined with the potential from our option agreement on the Rareco project, could allow us to fully realize our mine-to-market strategy in the next 18 to 24 months."

Great Western Minerals Group has six rare earth exploration and development properties in North America with an option on a sizable additional property in South Africa. The company also owns Less Common Metals, which produces a range of specialty alloys.  http://www.proactiveinvestors.com.au/companies/news/4237/great-western-minerals-to-raise-up-to-c7-million-to-expand-its-specialty-alloys-operations-4237.html