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KWG Tables Study of East-West Road to Ring of Fire Networking Eabametoong, Neskantaga, Webequie and Marten Falls With Nibinamik, Kingfisher, and Wunnumin Lake Connections Also Feasible $KWG.ca

Posted by AGORACOM-JC at 7:46 AM on Friday, August 26th, 2016

Kwglarge

  • All-weather road study that was previously prepared for it by Green Forest Management Inc.
  • Report estimated that an all-weather gravel road starting in the west at the Northern Ontario Resource Trail Road northeast of Pickle Lake, projecting eastward to the Ring of Fire area over a distance of approximately 305 kilometres, would cost between $83.6 million to $99.9 million.
  • Trunk roads from it to connect the First Nations communities of Eabametoong, Neskantaga, Webequie and Marten Falls would cost between $36.1 million and $73.1 million depending on the route alignments selected.

TORONTO, ONTARIO–(Aug. 26, 2016) – KWG Resources Inc. (CSE:KWG)(FRANKFURT:KW6) (“KWG”) has posted on its website an all-weather road study that was previously prepared for it by Green Forest Management Inc. The report estimated that an all-weather gravel road starting in the west at the Northern Ontario Resource Trail Road northeast of Pickle Lake, projecting eastward to the Ring of Fire area over a distance of approximately 305 kilometres, would cost between $83.6 million to $99.9 million. Trunk roads from it to connect the First Nations communities of Eabametoong, Neskantaga, Webequie and Marten Falls would cost between $36.1 million and $73.1 million depending on the route alignments selected. The study notes that additional trunk roads to connect Nibinamik, Kingfisher, and Wunnumin Lake are also feasible but required further research for construction budgeting purposes.

“We had this report prepared in 2013 to scope out the most rational options available to supply our railroad construction and address local aspirations,” said KWG President Frank Smeenk. “While we shared it extensively on a confidential basis, it’s very practical approach has not yet found traction, so we thought it timely to make the study public now as we prepare to discuss railroad construction financing options. The road network considered here is a desirable, if not indeed an absolutely necessary first step to opening this area development cornucopia and starting to create quite a few ongoing local jobs throughout the entire region.” The report also noted:

Socio-Economic Benefits:

The potential socio-economic benefits and opportunities resulting from the construction of a west-to-east year round access road are potentially quite significant. Currently, year round access to northern First Nation communities is restricted to air service, which is an expensive transportation alternative for freight and community members. Access by air is supplemented in the winter months by a network of snow and ice roads, which appears to becoming increasingly unreliable as a consequence of warmer winter temperatures; requires extensive planning and coordination of goods transportation; and significant capital in the preparation and operation of the winter road – an investment which literally melts away annually.

The socio-economic benefits and opportunities range from short to long term for First Nations communities in the project area. Specifically short term and direct benefits that can be expected include:

  • Heavy equipment and road construction training and skill development
  • Employment on road construction and maintenance
  • Employment in road construction support sectors, such as equipment parts and service, fuel supply, food and housing and equipment service centres
  • Need for a road network management company, to provide road maintenance and monitoring services

Most short term benefits are the foundation for transferable and lasting benefits to northern First Nation communities. The following longer term socio-economic benefits potentially could be expected from all-weather road access to communities, including:

  • Increased opportunities for local and regional-based employment, particularly associated with mining development at the Ring of Fire through an established road network
  • Transfer of road construction and equipment use skills to mining and other resource management and equipment operation sectors (construction, energy, forestry)
  • Expansion and improvement in health care delivery, including dental, home and long-term care services
  • Increased travel options for health care purposes
  • Improvement and expansion in delivery of government and social services
  • Improved response time for police services
  • Lower cost of living through ground-based delivery of goods and services
  • Lower cost of personal travel
  • Increased ability to access basic services (e.g. food, vehicle repair, clothing) and professional services (e.g. financial, legal, commercial)
  • improvement in the delivery of educational services on First Nation communities (e.g. establish secondary schools thus eliminating need for placement of students out of community)
  • Reduction in airport maintenance costs
  • Development of new remote, resource-based tourism ventures

Other Potential Opportunities:

With the establishment of an all-weather road access in the project area, the potential for future economic development beyond the mining sector is significant. Development opportunities have been scoped under other initiatives elsewhere in Ontario, within First Nation communities taking the lead. These development opportunities, which would foster greater economic independence for First Nation communities, include:

  • Land use management and development, such as the creation of forest management units for the management and use of wood supply
  • Establishment of harvesting operations to supply small scale sawmills to furnish lumber for local housing construction and to the mine developments
  • Construct cogeneration plants with wood biofuel for energy production at the communities, reducing dependence on fossil fuels, and potentially supplying cogeneration facilities at the mines
  • Remote based tourism expansion in the north
  • Growth of industrial, mechanical, transportation, commercial, financial, legal and health services sector

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. KWG also owns 100% of CCC which has staked claims and conducted a surveying and soil testing program, originally for the engineering and construction of a railroad to the Ring of Fire from Aroland, Ontario. KWG subsequently acquired intellectual property interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG subsidiary Muketi Metallurgical LP is prosecuting two chromite-refining patent applications in Canada, China, India, Indonesia, Japan, Kazakhstan, South Africa, South Korea, Turkey, and USA. The filings have been receipted in each of those jurisdictions.

Shares issued and outstanding: 961,320,281

KWG Resources Inc.
Bruce Hodgman
Vice-President
416-642-3575
info@kwgresources.com

KWG Files Notice of Sale From Control of Debut Diamonds $KWG.ca

Posted by AGORACOM-JC at 3:43 PM on Friday, August 5th, 2016

Kwglarge

  • Notice of Sale from Control with respect to all of its 144,630,000 common shares of affiliate Debut Diamonds Inc.
  • Notice provides that the shares will be sold either in whole or in part and either privately or through the facilities of the Canadian Securities Exchange stock market.

TORONTO, ONTARIO–(Aug. 5, 2016) – KWG Resources Inc. (CSE:KWG)(FRANKFURT:KW6) (“KWG”) has filed a Notice of Sale from Control with respect to all of its 144,630,000 common shares of affiliate Debut Diamonds Inc. (CSE: DDI) (“Debut”). The notice provides that the shares will be sold either in whole or in part and either privately or through the facilities of the Canadian Securities Exchange stock market.

About Debut:
Debut has both joint-ventured and wholly-owned diamond exploration properties that include the previously discovered MacFadyen and Good Friday kimberlite pipes within claims contiguous to the DeBeers claim block containing the Victor Diamond Mine. Debut also has an interest in the diamond bearing Kyle kimberlites about 100 kilometers to the west. See more at: http://www.debutdiamonds.com/docs/2015/01/debut-diamonds-inc-completes-private-placement-3/#sthash.CuirzLLh.dpuf

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. KWG also owns 100% of CCC which has staked claims and conducted a surveying and soil testing program, originally for the engineering and construction of a railroad to the Ring of Fire from Aroland, Ontario. KWG subsequently acquired intellectual property interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG subsidiary Muketi Metallurgical LP is prosecuting two chromite-refining patent applications in Canada, China, India, Indonesia, Japan, Kazakhstan, South Africa, South Korea, Turkey, and USA. The filings have been receipted in each of those jurisdictions.

Shares issued and outstanding: 961,320,281

Bruce Hodgman
Vice-President
416-642-3575
info@kwgresources.com

KWG Principal Shareholders Diverge From Majority $KWG.ca

Posted by AGORACOM-JC at 12:55 PM on Thursday, July 21st, 2016

Kwglarge

  • Annual and Special General Meeting voting resoundingly in favour of the re-election of the Company’s incumbent Board of Directors but then, very ambiguously, not supporting that same management’s principle initiative

TORONTO, ONTARIO–(July 21, 2016) – The shareholders of KWG Resources Inc. (CSE:KWG)(FRANKFURT:KW6) (“KWG”) have held their Annual and Special General Meeting voting resoundingly in favour of the re-election of the Company’s incumbent Board of Directors but then, very ambiguously, not supporting that same management’s principle initiative. A tally of proxies delivered for use at the meeting in respect of a proposed Special Resolution intended to provide the market in KWG’s shares with possible additional liquidity mechanisms, indicated that, if put to a vote, the Special Resolution would fall short of the desired two-thirds of the votes represented at the meeting. Accordingly, the meeting was then adjourned without a vote being held in respect of the Special Resolution to a date to be announced.

Annual Meeting voting results

Of KWG’s 961.3 million outstanding shares, proxies for a total of 501 million shares were voted at the meeting re-electing as directors Douglas Flett (98.43% in favour), Thomas Pladsen (98.41% in favour), Donald Sheldon (98.44% in favour), Frank Smeenk (98.77% in favour) and Cynthia Thomas (97.37% in favour). However, proxies representing 200.2 million shares were instructed to be voted against the Special Resolution seeking authority to create (by conversion of common shares for holders electing to do so) multiple voting shares re-convertible into their constituent common shares. The Company reported that its two largest shareholders, voting some 36% of the shares represented in person or by proxy at the meeting, had provided proxies that opposed the initiative which was overwhelmingly supported by the majority of KWG’s numerous individual shareholders. In the result, only some 60% of the votes available to be cast at the meeting were in favour and the meeting was adjourned without the Special Resolution having been put to a vote.

Since 1929 the ‘penny stock’ market has been denied access to margin credit and put-and-call option trading”, said KWG President Frank Smeenk. “This has perhaps in the past served well the interests of promoters and their underwriters, but often not so much the investors. We are determined to bring the benefits of those liquidity mechanisms to the owners of KWG so that its value can be fairly established in capital markets which include both those mechanisms and the very numerous sophisticated investors who seek their utility. This is particularly opportune now, as our Company’s undertakings increasingly come to international attention for their long-term strategic value. But, we do not want to leave behind the many thousands of our owners who are content to speculate only in the ‘penny market’. Our proposed solution is to do to our shares what all governments that circulate currency do to their money: let it be usable in both small denomination coins (pennies, nickels and dimes) and large denomination bank-notes (dollar bills), interchangeable back and forth at any time in accordance with a fixed exchange ratio. Instead of coins and bank-notes, KWG would have single-vote shares and multiple-vote shares, interchangeable back and forth at any time in accordance with a fixed exchange ratio. The support of the vast majority of our numerous individual shareholders has been gratifying and we are quite hopeful of soon being able to provide them with this simple mechanism. We think that it will increase considerably the liquidity in the market for shares in our Company and largely close the chasm between what their present sellers would take and what their buyers would pay. For KWG, a ‘penny market’ that trades in 1/2 cent increments has ceased to be of service for its shareholders. And, as there is no financial penalty in listing fees on the Canadian Securities Exchange, we have a unique opportunity to leave all of our issued shares outstanding. In this way we hope to avoid the disintermediation of our many enthusiastic small shareholders by the usual consolidation of capitalization, a route taken by so many other junior resource companies, and the consequent loss of liquidity from destruction of their tradable board lots which results.”

Recovery Process studies budgeted by Natural Resources Canada unit

The Steering Committee overseeing the Canadian Chromite R&D Initiative of Natural Resources Canada’s Canmet Mining unit recently approved programs and budgets for further research including KWG’s proprietary direct reduction method of producing ferrochrome with natural gas. KWG will provide sample material from the Black Horse chromite occurrence for use in the research programs.

Private Placement addition

The Canadian Securities Exchange has granted permission for the completion of one final tranche of the previously-announced private placement of units, for $150,000. Each of the 7.5 million further units will comprise one new treasury share and one warrant; each warrant may be exercised to acquire a further treasury share for $0.05 at any time within five years from closing. KWG applied for and was granted relief to the CSE’s minimum price rule. All shares issued will have a hold period of four months.

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. KWG also owns 100% of CCC which has staked claims and conducted a surveying and soil testing program, originally for the engineering and construction of a railroad to the Ring of Fire from Aroland, Ontario. KWG subsequently acquired intellectual property interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG subsidiary Muketi Metallurgical LP is prosecuting two chromite-refining patent applications in Canada, China, India, Indonesia, Japan, Kazakhstan, South Africa, South Korea, Turkey, and USA.

Shares issued and outstanding: 961,320,281

KWG Resources Inc.
Bruce Hodgman
Vice-President
416-642-3575
info@kwgresources.com