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GREAT WESTERN MINERALS GROUP SIGNS EXCLUSIVITY AGREEMENT WITH RARE EARTH EXTRACTION CO. LTD.
GREAT WESTERN MINERALS GROUP SIGNS EXCLUSIVITY AGREEMENT WITH RARE EARTH EXTRACTION CO. LTD..
About this update from Great Western Minerals Group Ltd
[{"type":"text","content":"GREAT WESTERN MINERALS GROUP LTD. NEWS RELEASE TSX Venture Symbol: GWG CUSIP: 39141Y 10 3OTCQX: GWMGF GREAT WESTERN MINERALS GROUP SIGNS EXCLUSIVITY AGREEMENT WITH RARE EARTH EXTRACTION CO. LTD. March 4, 2010 - Saskatoon Saskatchewan - Great Western Minerals Group Ltd. (\"GWMG\" or the \"Company) and Rare Earth Extraction Co. Ltd. of Stellenbosch (\"Rareco\"), South Africa are pleased to announce that they have entered into an exclusivity agreement (the \"Agreement\") that allows both companies to continue to move forward on their plans to jointly bring the former operating Steenkampskraal Mine back into production. The Agreement complements the Option Agreement (the \"Option\") signed in December of 2008 and discussed in GWMG's news releases dated January 13 and September 25, 2009 and GWMG's annual information form for the year ended December 31, 2008. Subject to GWMG's satisfaction with the results of its due diligence and certain other conditions, GWMG intends to consider one or more transactions which may result in the acquisition of an equity interest in Rareco and/or the negotiation of a supply agreement (the \"Supply Agreement\"). The Agreement is also intended to assist Rareco in its efforts to obtain a new order mining right from South Africa's Department of Mineral Resources (the \"DMR\"), to assist Rareco in preparation for full site development and to provide added certainty and flexibility with respect to GWMG's negotiation of an appropriate transaction structure. Under the terms of the Agreement, GWMG will pay to Rareco the sum of ZAR 75,000 (approximately C$10,275) per month for up to 12 months for certain standstill provisions and undertakings including, but not limited to: Working with the DMR to expedite the conversion of the old order mining right to a new order mining right;Obtaining all necessary governmental and regulatory approvals required to operate ...