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GREAT WESTERN MINERALS GROUP AND GANZHOU QIANDONG RARE EARTH GROUP SIGN RARE EARTH SEPARATION AGREEMENT
GREAT WESTERN MINERALS GROUP AND GANZHOU QIANDONG RARE EARTH GROUP SIGN RARE EARTH SEPARATION AGREEMENT.
About this update from Great Western Minerals Group Ltd
[{"type":"text","content":"GREAT WESTERN MINERALS GROUP LTD. TSX Venture Symbol: GWG CUSIP: 39141Y 10 3OTCQX: GWMGF GREAT WESTERN MINERALS GROUP AND GANZHOU QIANDONG RARE EARTH GROUP SIGN RARE EARTH SEPARATION AGREEMENT January 10, 2012 - Saskatoon, Canada: Great Western Minerals Group Ltd. (\"GWMG\" or the \"Company\", TSX:V – GWG) is pleased to announce that the joint venture agreement (\"Agreement\") with Ganzhou Qiandong Rare Earth Group Ltd. (\"GQD\") of China for the construction of a rare earth separation plant in South Africa has been completed and signed. Pursuant to the Agreement, the newly created joint venture company, Great Western GQD Rare Earth Materials Proprietary Limited (\"GWGQD\") will immediately finalize the preliminary work already underway on the process design and environmental components of the separation plant and move toward construction of the facility. A wholly owned subsidiary of GWMG will own mixed rare earth chlorides, which GWGQD will process under a tolling agreement. The Agreement provides that GWGQD will separate mixed rare earths into products usable by GWMG’s wholly owned subsidiary, Less Common Metals Limited (\"LCM\"), and third party customers. Under the terms of the Agreement, GQD receives 25% of the shares of GWGQD for its contribution to design and construction of the facility, and $7.5 Million of GWMG shares to be paid over three years contingent on the facility being fully commissioned and operating effectively, and fees and/or dividends for providing long term management support for the operation of the separation facility. The separation plant will be constructed in close proximity to GWMG's Steenkampskraal operation where the previously operating mine is being refurbished and readied in anticipation of rare earth mining. GQD is a highly respected processor of Rare Earth oxides and metals with over twenty yea...