Meanwhile, the first phase of assay results were received on April 10, revealing encouraging quantities of REO present at the property. The results pointed to a significantly higher concentration of REO than at other rare earths mines.
Add Great Western to the likely list of first non-Chinese Rare Earth Element producers. After recently raising $90 million via convertible bond paying a hair raising rate of 8%, it should be enough for entry into the high stakes world of REE production. Any stumbles now would likely bring out vulture rescuers to the scene, but I suspect that a Chinese rescue would be quite probable. In a sense, by getting this far, GW holds something of a get out of jail card, not I suspect that they will need it.
With Molycorp first, Lynas despite current licencing difficulties likely second to market non-Chinese REEs, Great Western is a likely contender to be third to market. Even so, I still have the feeling it’s always just a little too slow in bringing on non-Chinese REE supply.
Always do your own due diligence if thinking of investing in anything. It’s your own wealth you’re putting at risk. Measure twice cut once.
Great Western’s Steenkampskraal refurbishment progressing
By: Henry Lazenby 12th April 2012
JOHANNESBURG (miningweekly.com) – TSX-listed Great Western Minerals Group (GWMG) on Wednesday said it was progressing well with refurbishment of the Steenskampskraal rare earths mine in South Africa, while it was also making progress on completing a technical report on the property, following receipt of the first assay results.
On April 5, Great Western announced the closing of a secured convertible bond offering that resulted in the company raising $90-million.
The company said it would use the capital to complete a Canadian National Instrument 43-101-compliant technical report on the Steenkampskraal project, as well as to develop the property.
Development on the property required the construction of a mixed-chloride production facility, as well as construction of the separation plant near Steenkampskraal both for which contracts had already been inked.
Further, the money would be used to buy equipment and expand the company’s UK subsidiary Less Common Metals (LCM).
The bonds carry a yearly interest of 8%, payable twice yearly, and mature on April 6, 2017. Bonds would be convertible into common shares of the company at a rate of C$0.66 a share, while security against the bonds would entail a first-charge against the company’s shareholdings of its operating subsidiaries in the UK, the US and South Africa.