KWG Completes Flow-Through Placement30 Dec 2011
Montreal, Canada – December 30, 2011 – KWG Resources Inc. (TSXV: KWG) has issued 17,500,000 Units at a price of $0.10 per Unit for proceeds of $1,750,000. Each Unit, issued on a “flow-through” basis pursuant to the Income Tax Act (Canada), consisted of one common share of the Company and one-half of one warrant. Each whole warrant entitles its holder to purchase one common share for $0.12 until June 30, 2014.
Insiders of the Company purchased a total of 2,500,000 Units, representing approximately 14% of the Offering. KWG will use the proceeds to fund its half of the current drilling program at the Big Daddy deposit being conducted by Cliffs Chromite Far North Inc. (formerly Spider Resources Inc.) as the Operator.
The Company paid a finder’s fee of $75,000 and issued 750,000 compensation options to a registrant in connection with the Offering. Each compensation option entitles the holder to purchase one common share of the Company for $0.12 until June 30, 2014. All securities issued in connection with the Offering will be subject to a four-month statutory hold period, which will expire on May 1, 2012.
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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.
Download PR121 Dec 30 2012