Great Western Minerals Group Ltd. Has announced that it closed a $80 million bond offering that was $10 million oversubscribed, raising a total of $90 million to fund various growth initiatives.
The net proceeds raised from the Offering will be used: (i) to complete a technical report on the Company’s Steenkampskraal property in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects; (ii) to advance the development of the Company’s Steenkampskraal development project; (iii) for the construction of the Company’s monazite processing facility; (iv) for the construction of the Company’s separation facility; (v) for equipment purchases and expansion of Less Common Metals Limited; and (vi) for general working capital purposes.
“Successfully closing the $90 million Offering is an immensely important step in the GWMG story,” said GWMG president and chief executive officer Jim Engdahl. “Even moreso, the fact that the Offering was fully subscribed, including the full exercise of the over-allotment option, speaks volumes about the interest of investors in GWMG and the confidence they have in our company being one of the most fully integrated ‘first movers’ in the global rare earth business.”
Great Western Minerals Group Ltd. is an integrated Rare Earths processor. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company’s wholly owned subsidiaries Less Common Metals Limited in Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain aluminum, nickel, cobalt and Rare Earth Elements. As part of the Company’s vertical integration strategy, GWMG also holds 100 percent equity ownership in Rare Earth Extraction Co. Limited, which owns a 74 percent equity interest in the Steenkampskraal development project. In addition to an exploration program at Steenkampskraal, GWMG also holds interests in four active Rare Earth exploration and development properties in North America.