Rare earths processor Great Western Minerals (TSX-V:GWG) has closed an additional C$2.0 million round of funding through a private placement of its secured sub-ordinated debt.
The proceeds of the financing will be used to continue the progress of the feasibility study on the Steenkampskraal mine in South Africa, as well as for general corporate purposes.
Great Western appointed SRK Consulting Engineers and Scientists of Johannesburg to undertake phase 1 of the feasibility study.
"Successfully closing another $2 Million of this debenture offering enables Great Western Minerals to take yet another step in the execution of our plan to become the first integrated Rare Earths producer outside of China," said president and CEO Jim Engdahl.
The debentures are not convertible and bear interest at a rate of 12% per year, issued at a price of $1,000 per debenture. Each lender will receive 500 shares of the company as a fee for every $1,000 of debentures purchased.
Great Western Minerals' specialty alloys are used in the battery, magnet and aerospace industries. Produced at the company's wholly-owned subsidiaries Less Common Metals in Birkenhead, U.K. and Great Western Technologies in Troy, Michigan, these alloys contain aluminium, nickel, cobalt and rare earth elements.
Great Western signed an agreement for 100% of the rare earth elements produced at the former Steenkampskraal mine and holds a 20.8% ownership in Rare Earth Extraction, the owner of the mine.
The company also holds interests in seven rare earth exploration and development properties in North America.
It was down more than 5% at 2:45pm ET on Wednesday, trading at $0.35 on the TSX-Venture Exchange.