KWG Appoints CFO And Terminates Area Of Interest With Spider16 Sep 2009
Montréal , Canada – KWG Resources Inc. (TSX-V: KWG) (“KWG”) advises that KWG and Spider have terminated past area of interest agreements. As a result of the termination of these agreements yesterday, the parties will no longer be obliged to share acquisitions in any area of interest covered by the agreements, or have any obligation to each other regarding business opportunities in such areas of interest.
To enable KWG and Spider to act independently of each other, the parties have terminated agreements signed between them in April 2003 and May 2006. Following KWG’s financial reorganization in 1998, the April 2003 agreement consolidated various arrangements between the parties under a joint venture initially constituted in 1992. When KWG negotiated an option on a block of claims from Freewest Resources Canada Inc in 2005, the area-of-interest provisions of the 2003 agreement dictated that the option be shared with Spider. A further agreement governing the equally-earned optioned interests was completed by the parties in May 2006.
As a result of amendments to the terms of the Freewest Option agreement that the three parties to it announced in individual news releases on Monday, September 14th 2009, the two underlying agreements between KWG and Spider have now been terminated in order to permit the parties to pursue their independent business interests.
Chief Financial Officer succession
KWG also announces that it has engaged the auditing and accounting firm of Palmer Reed ofToronto , Canada , to provide accounting, disclosure compliance and tax services for the parent company and its subsidiaries and affiliates, following Leonard Teoli’s resignation as the Company’s Chief Financial Officer. Palmer Reed’s managing partner Thomas E. (Ted) Masters has been appointed Chief Financial Officer of the Company and its subsidiaries.
About KWG Resources Inc.
KWG Resources is a mineral exploration company with extensive claim holdings in the James Bay Lowlands of Northern Ontario, Canada, where important discoveries of nickel and chromium have been made recently in the Ring of Fire. KWG has an equal joint venture interest in a large claim block in the central part of the discovery area, with Spider Resources Inc. The joint venture is developing the Big Daddy chromite deposit adjacent to the Black Thor and Black Label chromite discoveries of Freewest Resources. KWG holds a 1% net smelter royalty in all three deposits and has created Canada Chrome Corporation to pursue the development of them.
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