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GREAT WESTERN MINERALS GROUP SIGNS LETTER OF INTENT TO BE MAJOR LONG TERM RARE EARTH MATERIAL SUPPLIER TO VACUUMSCHMELZE
GREAT WESTERN MINERALS GROUP SIGNS LETTER OF INTENT TO BE MAJOR LONG TERM RARE EARTH MATERIAL SUPPLIER TO VACUUMSCHMELZE.
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 SIGNS LETTER OF INTENT TO BE MAJOR LONG TERM RARE EARTH MATERIAL SUPPLIER TO VACUUMSCHMELZE September 19, 2011 - Saskatoon, Canada: Great Western Minerals Group (“GWMG” or the “Company”) is pleased to announce that it has signed a non-binding Letter of Intent to enter into a long term agreement with Vacuumschmelze GmbH & Co. KG (“VAC”) of Germany for the supply of rare earth alloys and metals. The Letter of Intent specifies that VAC commits to purchasing a minimum of 50% of its rare earth material needs from GWMG. It is the stated goal of both VAC and GWMG to enter into a long term, multi-year agreement, whereby GWMG’s wholly owned subsidiary Less Common Metals (“LCM”) will be a major approved supplier to VAC, producing and supplying neodymium / dysprosium alloys, samarium alloys and associated metals specifically produced for VAC’s permanent magnet operation. That alloy / metal production will be based on the long term supply of rare earth feed materials from GWMG’s Steenkampskraal mine. LCM, a current supplier of samarium-cobalt alloys to VAC for the manufacture of magnets and magnet assemblies, plans to install new melting capacity to provide alloy composition and microstructure that matches VAC’s specifications into the future. This is expected to provide mutually beneficial opportunities for future product development. VAC, the only sintered NdFeB permanent magnet producer for mass volumes in Europe, has developed proprietary materials and processes to produce one of the world’s most powerful types of permanent magnets for VAC’s customers in Europe, the United States and Asia. (See VAC website www.vacuumschmelze.de and select language of choice at top of website). GWMG President and Chief Executive Officer Jim Engdahl said, “Moving toward a long term ...