KWG Testing Important to Infrastructure Plan
TORONTO, ON – KWG Resources Inc. (TSX VENTURE:KWG) (“KWG”) is very encouraged with the results of ongoing metallurgical test work to determine the thermodynamics of metalizing the chromite from the Black Horse deposit by its reduction with natural gas.
“We have reported to the Ministry of Northern Development and Mines some of the conclusions being derived from this work which may have profound and positive consequences for the Development Corporation that the Minister has announced,” said KWG President Frank Smeenk. “We were gratified to contribute to the discussion, at Minister Gravelle’s invitation, about the many considerations for the infrastructure expansion that the Development Corporation will undertake. As our own test work indicates, ‘getting it right’ may need a little more thinking-through and is very much worth taking the time for.”
KWG also announces that it has closed a third tranche of its previously announced flow-through private placement, the subscriptions to which now total $2.1 million. The company has received conditional listing approval to complete a final subscription of units for $300,000 on or before December 23, 2013. Each unit comprises one flow-through treasury share and one warrant which may be exercised to acquire a further flow-through share for $0.10 at any time within three years. The units may be acquired by qualified investors for a subscription of $0.05 each.
The third tranche consisted in 10,400,000 flow-through units for gross proceeds of $520,000. Finder’s fees included a payment in cash of $10,250 and a compensation option entitling its holder to purchase 82,000 common shares of KWG at a price of $0.05 during a three-year period. All securities issued are subject to a four-month hold period.
About KWG: KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined by a drilling program expected to resume early next year. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Shares issued and outstanding: 731,137,273
