Photo by: Great Western Minerals Group
TORONTO (miningweekly.com) – The TSX-V-listed stock of rare earth element-based metals and metal alloys manufacturer Great Western Minerals Group (GWMG) on Wednesday surged 30% after the company late on Tuesday announced that it had appointed a new director and had retained CIBC World Markets as its exclusive financial adviser in the development of capital structure and financing options for the Steenkampskraal project, in South Africa.
The company said it had tapped CIBC for the firm’s significant experience, which would help it evaluate and pursue financing alternatives.
However, GWMG noted that it had not made a decision on whether or not to enter into a transaction, and that there could be no assurance that it would enter into a transaction in the future.
GWMG said it had appointed Don Siemens as an independent director, effective from Monday, bringing the total number of directors to six. Siemens, with more than 30 years of experience as a chartered accountant, worked for eight years in public practice as a partner with major accounting firms, and had served on a number of public boards. He specialises in corporate finance, reorganisations and mergers and acquisitions.
"Over the past year we further defined our objectives and have made measurable progress toward our vertical integration strategy. We believe our world-class manufacturing service operation at Less Common Metals and the Steenkampskraal project have significant long-term potential and today's announcements further support our plan as we move forward,” president and CEO Marc LeVier said.
Meanwhile, GWMG also said that its bondholders have supported the company's decision to focus its resources on the Steenkampskraal project, approving a joint venture for its Hoidas Lake project, in Saskatchewan, with Star Minerals Group. The definitive deal was announced early last month, and will see Star acquire up to a 51% stake.
More than 71% of $90-million secured convertible bondholders were at the special meeting, 100% of whom voted in favour of the venture.
GWMG’s stock on Wednesday closed up C$0.03 a share at C$0.13.