Great Western Minerals (CVE:GWG) (OTCQX:GWMGF) has signed an option and joint venture agreement for its Hoidas Lake project in northern Saskatchewan with Star Minerals Group (CVE:SUV), executing on a preliminary deal inked back in June.
The manufacturer of rare earth element-based metal alloys, which is developing its Steenkampskraal rare earth mine in South Africa to production, said the joint venture deal will allow it to focus its efforts on becoming a fully integrated rare earths producer.
The Hoidas Lake project is made up of 14 mineral claims, totaling about 12,490 hectares. "This agreement allows us to continue to focus our resources and time on our SKK project, while still moving the Hoidas Lake project forward without committing capital," said Great Western president and CEO, Marc LeVier.
Under the terms of the deal, Star has been given the option to acquire a 51% stake in the property, separated into two tranches. The first option would give Star a 25% interest, and is contingent on the company completing an NI 43-101 compliant preliminary economic assessment at the project within two years.
The additional option, for the remaining 26%, is dependent on Star finishin a feasibility study during a four year period after exercising the first option. All costs and expenses incurred will be paid by Star, Great Western said.
The deal still requires regulatory and bondholder approvals, which both parties plan to get in due course.
Last month, Great Western said revenue in the third quarter retreated as weak alloy prices overpowered an increase in volumes, but margins improved and expenses fell as the company looks to cut costs for the development of its Steenkampsraal mine in South Africa.
The rare earths processor makes specialty alloys used in the magnet, battery, defence and aerospace industries from two facilities in the U.S. and U.K. Its development program at Steenkampskraal, which includes a restart of the historical mine, is central for a strong flow of feedstock for its downstream processing unit.
The results of a feasibility study on the project are expected to be released by the end of the first quarter of next year. In October, the company selected three firms to carry out the report on the rare earth mine, including Venmyn Deloitte as the primary independent project coordinator and author. Reported by Proactive Investors 11 hours ago.
The manufacturer of rare earth element-based metal alloys, which is developing its Steenkampskraal rare earth mine in South Africa to production, said the joint venture deal will allow it to focus its efforts on becoming a fully integrated rare earths producer.
The Hoidas Lake project is made up of 14 mineral claims, totaling about 12,490 hectares. "This agreement allows us to continue to focus our resources and time on our SKK project, while still moving the Hoidas Lake project forward without committing capital," said Great Western president and CEO, Marc LeVier.
Under the terms of the deal, Star has been given the option to acquire a 51% stake in the property, separated into two tranches. The first option would give Star a 25% interest, and is contingent on the company completing an NI 43-101 compliant preliminary economic assessment at the project within two years.
The additional option, for the remaining 26%, is dependent on Star finishin a feasibility study during a four year period after exercising the first option. All costs and expenses incurred will be paid by Star, Great Western said.
The deal still requires regulatory and bondholder approvals, which both parties plan to get in due course.
Last month, Great Western said revenue in the third quarter retreated as weak alloy prices overpowered an increase in volumes, but margins improved and expenses fell as the company looks to cut costs for the development of its Steenkampsraal mine in South Africa.
The rare earths processor makes specialty alloys used in the magnet, battery, defence and aerospace industries from two facilities in the U.S. and U.K. Its development program at Steenkampskraal, which includes a restart of the historical mine, is central for a strong flow of feedstock for its downstream processing unit.
The results of a feasibility study on the project are expected to be released by the end of the first quarter of next year. In October, the company selected three firms to carry out the report on the rare earth mine, including Venmyn Deloitte as the primary independent project coordinator and author. Reported by Proactive Investors 11 hours ago.