KWG To Place $3 Million15 Nov 2010
Montréal, Canada – November 15th, 2010 – KWG Resources Inc. (“KWG” or “the Company”) advises that it has received conditional listing approval from the TSX Venture Exchange for a private placement of treasury shares to raise up to $3 million. The Company has provided notice of the conditional listing approval to Cliffs Greene B.V. (“Cliffs”) which has the right to subscribe for the entire placement, or alternatively notify KWG that it will exercise its pre-emptive right to maintain its percentage interest only. Cliffs’ present interest in the outstanding shares and warrants of KWG is 18.07% on a fully diluted basis. The proceeds of the placement will be added to working capital to fund the drilling program at Big Daddy and ongoing engineering and assessment work on the feasibility of a railroad right-of-way by KWG’s subsidiary Canada Chrome Corporation.
The Big Daddy drilling program was interrupted by the requirement to locate a temporary campsite near the drilling locations after these had been constructed and supplied. Webequie Logistics was engaged to install the new temporary facilities at Koper Lake on a claim of Fancamp Exploration Ltd., to serve the programs of both Fancamp and KWG. The KWG program is expected to be continued before the end of November.
KWG has also applied to the Mining and Lands Commissioner to be added as a party to the appeal by Noront Resources Ltd. of an Order that it may not withdraw its prior consent to the use of the surface of its claim for the construction of an all-weather landing strip. “We are supportive of Marten Falls Logistics Joint Venture in completing the construction of an all weather airstrip and providing some common facilities for use by all the companies trying to do exploration on their claims up there”, said KWG Vice-President of Exploration Moe Lavigne. “The delays and costs that we all experience in the absence of such facilities, is not only extremely wasteful and challenging for the safe conduct of our programs, but also postpones the meaningful participation that the area’s First Nations seek in these developments.”
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.
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Download PR80 Nov 15 2010