Great Western Minerals Group Ltd. Terminates Exclusivity Provisions
Great Western Minerals Group Ltd. announces that it has terminated the exclusive dealing provisions of its non-binding letter of intent with Molycorp Minerals, LLC dated April 19, 2009.
After discussing a possible loan from Molycorp to GWMG, the parties have been unable to agree on the terms and conditions of such a loan by April 30, 2009 (as first disclosed in the press release of GWMG dated April 20, 2009), and GWMG has therefore elected to terminate its exclusive dealing obligations under the Letter of Intent in accordance with its terms.
Pursuant to the Letter of Intent, Molycorp and GWMG have been in discussions regarding a possible transaction with Molycorp. Although GWMG is no longer obligated to deal exclusively with Molycorp, GWMG’s management is continuing discussions with Molycorp with a renewed focus on Molycorp’s possible acquisition of GWMG’s manufacturing assets.
After the Letter of Intent was announced, GWMG received several unsolicited expressions of interest from third parties regarding GWMG. Jim Engdahl, President of GWMG said “these unsolicited expressions of interest are very encouraging from management’s perspective and we intend to explore all possibilities that have the potential to create further synergies and add to shareholder value”. Readers are cautioned that the expressions of interest are in a very preliminary stage and no specific terms have been proposed or discussed. There is no assurance that such expressions of interest will result in substantive discussions or any agreement(s).
