KWG Provides Update, Will Drill Freewest Option with Spider19 Feb 2008
Montreal, Canada, February 19th, 2008 – KWG Resources Inc. (TSXV-KWG) will not proceed with a second tranche of the $3,000,000 private placement, as announced in December. The Company closed $2.1 million of this placement at the end of 2007.
KWG and its JV partner Spider Resources Inc (TSXV-SPQ) have budgeted $2.2 million to drill the targets identified in the claims optioned from Freewest Resources Canada Inc (TSXV-FWR) in an initial program this winter. Drilling is expected to commence there within the next two weeks when line-cutting and on-ground geophysical definition of the targets is completed. KWG and Spider have an equal interest in the option, under which they may together earn up to a 65% interest in the property. Both companies also have equivalent interests in various other joint ventures between them, including the extensive McFaulds Lake properties optioned to UC Resources Inc (TSXV-UC). “It is important that the investing public understands how KWG and Spider are completely equal in their interests that are adjacent to the recent Noront discovery in the so-called Ring of Fire”, said KWG president Frank Smeenk.
As also previously announced, three 100-ton bulk samples of the MacFadyen kimberlites are planned for this winter season. Pursuant to the MacFadyen KWG-Spider Joint Venture, KWG may dilute the interest of Spider to 33%. The Company has initiated steps to transfer the property to subsidiary Debuts Diamonds Inc. KWG plans to distribute the shares of Debuts Diamonds Inc as a return-of-capital dividend to shareholders of record at a future date to be announced.
For further information, please contact:
Direct: (905) 582-9744,
Telephone: (514) 866-6001 – Ext. 266
Fax: (514) 866-6193
Or visit our website: www.kwgresources.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
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