19.03.2012
Great Western Minerals (CVE: GWG, OTC: GWMGF, FFT: GWM) announced details of the convertible bond announced last week to fund the Steenkampskraal Rare Earth Project in South Africa.
The company said it plans to raise up to C $ 90 million with the transaction.
Mandated agents GMP Securities, ISM Capital and Byron Capital Markets Ltd have set the convertible to C $ 80 million and have an over-allotment option that can add another $ 10 million.
The funds will finance a NI 43-101 compliant technical report as well as further refurbishment of the formerly producing property.
In addition, the money is earmarked for the construction of the rare earth processing plant and a facility for processing monazite.
The term of the bond is supposed to be five years and the interest rate is 8%. The issue is expected to be completed on April 5th.
Chief Executive Officer Jim Engdahl has now begun the process of appointing a successor. He had previously stated that he plans to resign as soon as Great Western has a solid foundation for continued growth and is fully funded to start production.
Great Western produces specialty alloys for batteries, magnet applications and the aerospace industry from two locations: Less Common Metals (LCM) in Birkenhead, UK, and Great Western Technologies (GWT) in Troy, Michigan.
In addition to Steenkampskraal, LCM and GWT, the Company owns four rare earth exploration properties in North America.
Great Western Minerals Group Ltd is a Canada-based company with six rare earth exploration and development properties in North America with an option on a substantial additional property in South Africa. In addition, as part of the company's strategy of pursuing a vertically integrated business model, the company's wholly-owned subsidiaries, Less Common Metals Limited in Birkenhead, UK, and Great Western Technologies Inc. in Troy, Michigan, produce a selection of specialty Alloys for use in the battery, magnet, and aerospace industries. These “designer” alloys include those that contain copper, nickel, cobalt and the rare earth metals.
Source: proactiveinvestors.de
