Great Western Minerals Group Ltd. (GWMG) announces that it has signed a Letter of Intent to purchase certain specialty metal production assets located in the USA. The production equipment is capable of producing nickel metal hydride (NiMH) powder, used in hydrogen storage materials and NiMH rechargeable batteries, as well as a range of specialty metals and superalloys. The plants are currently in operation.

The Letter of Intent provides for a 60-day due diligence period, and upon completing the due diligence and successfully executing a formal purchase agreement, GWMG will issue a news release outlining the details of the purchase.

GWMG views this as an ideal opportunity for the Company to begin formulating its marketing strategy for specific products it plans to produce from its 100%-owned rare earth element project at Hoidas Lake in northern Saskatchewan. Two of the key rare earth elements present at Hoidas Lake are cerium and lanthanum, which are used to make mischmetal – a critical component of NiMH powder for use in rechargeable batteries. NiMH rechargeable batteries are used in a variety of applications including electric and hybrid vehicles. The hybrid vehicle market, in particular, has experienced a dramatic increase in demand recently and North American unit sales are projected to increase 500% over the next five years (source: J.D. Power and Associates in the Detroit News).

Currently, with China supplying nearly 100% of the rare earth market, there are no North American sources of rare earth elements for applications like NiMH batteries. GWMG believes that Hoidas Lake represents an opportunity to establish the Company as a significant player in the rare earth industry, and the successful completion of this purchase would be 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. – Press Release