www.gwmg.ca
Great Western Minerals Group Ltd. is a Canadian-based company with six rare earth exploration and development properties in North America with an option on a sizable additional property in South Africa. In addition, as part of the Company’s strategy to pursue a vertically-integrated business model, the Company's wholly-owned subsidiaries of Less Common Metals Limited located in Birkenhead UK, and Great Western Technologies Inc., located in Troy, Michigan, produce a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and the rare earth elements.
Great Western Minerals and Rareco receive New Order Mining Right for Steenkampskraal Mine
Great Western Minerals Group (TSX-V: GWG, OTC:GWMGF) (‘GWMN’) alongside its partner Rare Earth Extraction Co Ltd (‘Rareco’), announced that it has been granted a New Order Mining Right by South Africa’s Department of Mineral Resources, in relation to the Steenkampskraal Monazite Mine in the Western Cape Province.
Earlier this year, in March, GWMG entered into an exclusivity agreement with Rareco to jointly bring the former operating Steenkampskraal mine back into production. A portion of the rare earth production from the mine would supply both of Great Western’s manufacturing facilities at Less Common Metals limited and Great Western Technologies with their entire earth requirements.
"This is a critical step in enabling GWMG and Rareco to bring the Steenkampskraal mine back into production as one of the first new Rare Earth mines outside of China”, GWMG President and CEO Jim Engdahl commented.
“We project Steenkampskraal to be one of the highest grade Rare Earth mines in the world and therefore one of the world's lowest cost producers."
“For South Africa [the mining right] signals the establishment of Rare Earth mining activity and the development of related industries ... These will ultimately enhance South Africa's competitiveness in the Rare Earth industries global supply chain”, stated Mohamed Madhi GWMG Advisory Board Member, and Areva South Africa Chairman.
With the issuance of the New Order Mining Right, the partners are now moving forward to finalize the Supply Agreement in accordance with the terms of an Option Agreement signed between the companies, back in December 2008.
Once finalized, the deal will give GWMG the right to purchase 100% of the Rare Earth products recovered from the mining and processing of the Steenkampskraal ore. "Strategically, this is of great importance to our company ... we would be able to use this supply source to serve current and future Rare Earths customers", Engdahl added.
At the company’s two facilities, GWMG the manufacture and supply of Rare Earth based alloys, powders and high purity metals, the company also intends to further separate and concentrate individual Rare Earths, for downstream use in its metals and alloys facilities.
