GWG - Great Western Minerals (TSXV) - Page 14

Jan 24, 2011 09:31 ET
Great Western Minerals Group Acquires 70.2% of Rareco Shares to Date

SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 24, 2011) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (OTCQX:GWMGF) announces that it has, to date, acquired 70.2% of all outstanding shares (the "Rareco Shares") of Rare Earth Extraction Co. Limited ("Rareco").

As at today, GWMG has received and paid for 33,528,308 of the 47,764,700 Rareco shares outstanding. The offer for the remaining shares is open until February 28, 2011.

As previously announced (see GWMG Media Release of December 21, 2010: "Great Western Minerals Group Delivers Offer Circular To Rareco Shareholders"), GWMG made an all-cash offer for all remaining ordinary shares in Rareco that GWMG did not already own.

"This is a pivotal moment in the execution of GWMG's corporate strategy to become a fully integrated, global Rare Earth producer," said GWMG President and Chief Executive Officer Jim Engdahl. "We are extremely pleased to see this level of interest in tendering Rareco shares to Great Western Minerals Group."

Jim Engdahl
President and CEO

VISITED MY PHARMACIST
With the new share offering that Molycorp has put out today for $500 million I am predicting that Molycorp will take another run at acquiring GWMG assets. I am getting my poison pills out and have seen my pharmacist to double my dose.

GWG having a great day - Could push $1.00 by close

GWMG SIGNS LETTER OF INTENT

http://www.marketwire.com/press-rele...WG-1387693.htm

Closes on a 11 year high

The significance of the Letter of Intent with EEC

Taken from another Bullboard
A military person's view on Rare Earth;

"I don't have a hell of a lot to contribute to the finances/business side of things, nor is my trading experience extensive. If there's something I can offer this community though, I've got a pretty strong appreciation for the military significance of these strategic materials. I'm in the forces, have served overseas, and am pretty up to speed on the critical role technology plays in the modern military context. I'll focus for the most part on the Americans, since they're the real big player in this outside of China.

America's global dominance is entirely predicated on its ability to beat the living snot out of any power that challenges it militarily. America's military might is unparalleled. This comes from several origins: Huge funding, massive manpower, an excellent professional training system, and most significantly to this, technological dominance.

From the tactical (idiots like me with boots on the ground and rifles in our hand) to the operational (a regional military commander using a variety of intelligence and communications assets) to the national strategic level (particularly strategic communications and reconnaissance assets), the military is shot through with technology that relies on rare earths. At the very highest levels, American military might is built on information dominance; their ability to detect rivals' movements and intentions through technical means. That might be intercepting communications, it may be photo or radar reconnaissance form satellites or aircraft.

Dominating the information battle space, America's next critical strength is its utterly overwhelming air power. It has the most of the best aircraft. Those aircraft in turn have the best radars, the best communications equipment, and importantly carry the best weapons- the precision missiles and bombs that allow for an unparalleled ability to blow things up with a substantial degree or precision and discrimination. Everything from the lasers that guide bombs, the radar seeker heads in missiles, the the holographic display the pilot looks at have some degree of rare earths use. The radars used to control the air battle have rare earths. The computers that form the complex information systems allowing aircraft to target and engage multiple enemy at once have some rare earths.

The strategic naval dominance is laced with technology- again, precision weapons, sensitive sonars and radars, complex, modern ditgitized information displays. Again, rare earths.

On the ground we have technology integrating them. The holographic sight I mount on my rifle has some small amount of rare earths. Our armoured vehicles have laser rangefinders and aiming systems, complex electronics, and use navigational and communication systems that, again, use rare earths.

America's biggest geo-strategic rival is China. I hardly need point out where the significance of all this comes in. These materials are essential to the supply chains that provide the technological dominance that America needs to maintain its current spot in the world order. Without sufficient supplies it cannot built the things that turn an armoured hull with tracks, an engine, and a gun into a fighting vehicle that's integrated with the modern, technologized combat information systems. It can't put armaments on the aircraft. It can't build new sonars for new ships.

Even with no likely threat from China, simply the fact that this vulnerability exists is plainly beginning to give the U.S. defense sector pause. It is unacceptable, from a strategic risk standpoint, to not establish a domestic/friendly supply of these materials. This is not to say that in a matter of months America's military could be rendered ineffective by starving it of rare earths; far from it. However any future production will need more and more of the stuff, and the military is getting more technological, not less.

GWMG, as an integrated company that stands to come into fully integrated production in the next few years is very, very well poised to lock in some serious interest in what it sells. I like what I see. From a purely demand side, the long term need for what they produce is there.

GWMG had a bit of a thing on this on their site. It's frankly pretty simplistic and amateurish, but it gives an idea of some of the systems I'm talking about. http://www.gwmg.ca/images/file/2009-...plications.pdf

Here is another link regarding Department of Defense concerns

 

http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=119688&sn=Detail