Great Western Minerals Group Ltd. ("GWMG" or the "Company") announces that it has closed a private placement of $3,000,000 (Cdn.) of secured subordinated debentures of the Company (the "Debentures"), subject to regulatory approval. Subsequent to closing the private placement, GWMG has purchased approximately 20.8% of the shares of Rare Earth Extraction Co. Limited ("Rareco") of Stellenbosch, South Africa for a price of approximately $3,000,000 (Cdn.) 

The Debentures are not convertible, bear interest at a rate of 12% per year and were issued at a price of $1,000 per Debenture. Each lender shall receive 500 common shares of the Company as a commitment fee for every $1,000 of Debentures purchased. 

A cash commission equal to 2.0% of the aggregate gross proceeds of the Debentures was paid to Byron Securities Limited of Toronto who acted as the exclusive agent in connection with the offering of the Debentures. 

Jim Engdahl, President and CEO of Great Western Minerals Group said, "Successfully closing this Debenture offering moves our company one more significant step down the path to being the first fully integrated Rare Earths producer outside of China. The purchase of these shares of Rareco, alongside our previously signed Off-take agreement under which our Company can access 100% of the Rare Earth Products produced by Rareco and its subsidiaries from ore mined at Rareco's Steenkampskraal mine, keeps our Company right on track in the execution of our strategic plan."

 

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