Post by Franko10 ™ on Sept 20, 2004 15:44:54 GMT -5
NEWS RELEASE
CANDLE LAKE AGREEMENT REACHED
Gary Billingsley, President, is pleased to report that the Company has reached an agreement with War Eagle Mining Company Inc. (TSX Venture: WAR) to purchase their remaining working interest in the Candle Lake diamond project in Saskatchewan.
The purchase price consists of a cash payment of $150,000 and the issuance of 500,000 common shares of the Company to War Eagle by April 15, 2004. The Company has also agreed to issue to War Eagle, 500,000 shares of Great Western Diamonds Corp. ("GWD"), currently a wholly-owned subsidiary of the Company. War Eagle will retain a 1.5% net royalty in the project. The purchase is contingent on GWD becoming a publicly-traded entity within 180 days.
The transaction will give the Company a 100% working interest in the Candle Lake property. Shareholder approval has been received for the subsequent transfer of all of the Company's Candle Lake interest to GWD in exchange for common shares of GWD, plus additional compensation yet to be determined. Company shareholders will then receive a dividend of GWD common shares, on a 4:1 basis, when GWD is listed on a public stock exchange.
The Candle Lake property, located immediately north of the Fort a la Corne kimberlite clusters in central Saskatchewan, covers approximately 55,000 acres and hosts two diamond-bearing kimberlite pipes. Work plans include completing the caustic fusion and analysis of approximately 100 samples currently in storage, further definition drilling and a mini-bulk sample.
Gary L. Billingsley, C.A., P.Eng., P.Geo.
President
For further information contact the Company at (306) 668-0701. All email inquiries should be made to info@gwmg.ca (website: http://www.gwmg.ca) Direct mail: Great Western Minerals Group Ltd., 119A Cardinal Crescent, Saskatoon, SK S7L 6H5
(The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the foregoing contents)
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© 2004 Great Western Minerals Group Ltd.