Old Press Release
Great Western Minerals Group Ltd.: Specialty Metals Asset Purchase Complete
Wednesday December 14, 9:57 am ET
SASKATOON, Saskatchewan--(BUSINESS WIRE)--Dec. 14, 2005--Great Western Minerals Group Ltd. (TSX VENTURE:GWG - News; OTCBB:GWMGF - News; "GWMG") is very pleased to announce that it has signed, through its wholly-owned subsidiary Great Western Technologies Inc. ("GWTI"), a formal Purchase Agreement with Energy Conversion Devices Inc. ("ECD"), (NASDAQ:ENER - News) and an affiliate, whereby GWTI is purchasing certain specialty metal production assets located in Troy, Michigan. The production equipment, located in two adjacent plants, is capable of producing nickel metal hydride (NiMH) powder, used in hydrogen storage materials and NiMH rechargeable batteries, and a range of other specialty metals, powders and super alloys. The plants are currently in operation.
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The purchase price is US$1.3 million, of which ECD will receive $906,000.00, payable in installments over two years, with ECD and its affiliate each having the option of converting half the purchase price into common shares of GWMG.
GWTI will form the basis of GWMG's marketing strategy for specific products it expects to produce from its 100%-owned rare-earth element project at Hoidas Lake in northern Saskatchewan. Cerium and lanthanum are two of the key rare-earth elements present at Hoidas Lake and are critical components of NiMH powder for use in rechargeable batteries. NiMH rechargeable batteries are used in a variety of applications including electric and hybrid electric vehicles. The hybrid and alternate energy vehicle market, in particular, is one area where GWTI plans to focus product and marketing efforts.
"We feel very fortunate that ECD and its affiliate presented us with this opportunity" states Gary Billingsley, President of GWMG. "It not only allows us to retain a world-class production team, but also gives us a toe-hold in a very competitive specialty metals market with introductions to some of the major players in the alternate energy field. While Hoidas Lake is still in the development, pre-feasibility stage, with the hybrid vehicle market expanding around the globe, and China consuming its own rare earth resources at an increasing rate, we want to be ready to supply rare earth products to specific segments of the alternate energy markets when Hoidas Lake does come on stream." Mr. Billingsley also states, "In the near-term, while Hoidas is in development, these plants have the potential to generate positive cash flow, and that could be a significant bonus to us."
GWMG believes that this purchase is a major step in achieving the corporate goal of becoming a completely vertically-integrated North American supplier of rare earth elements and related value-added products.
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