Great Western Minerals Plant $ 15 million private placement
Great Western Minerals (CVE: GWG, OTC: GWMGF, FFT: GWM) plans to raise at least C $ 15 million in a private placement.
The Company has engaged a broker syndicate with financing led by Byron Capital Markets and Cormark Securities.
The syndicate plans to issue a total of 23.810.000 shares at a unit price of C $ 0,63. The agents will have an over-allotment option on 3.571.500 shares at the issue price, which may add an additional $ C 2,25 million.
Great Western expects to receive funding no later than 10. November is completed.
The new funds are earmarked for the ongoing development of the Steenkampskraal Rare Earth Project in South Africa.
Completion of the new NI43 101 compliant resource estimate for Steenkampskraal is expected in the first half of 2012.
The cost of rehabilitation of the shaft and the re-commissioning of the processing plant is estimated at around US $ 60 million.
The restart schedule is for underground mining and first-quarter 2013 processing to be fully operational.
If the plant runs at full capacity of 5.000 tonnes of rare earth oxide, the company will generate an annual cash flow of US $ 250 million.
