KWG Announces Ring of Fire Ore Transportation and Utility Corridor
Toronto, Ontario--(Newsfile Corp. - July 27, 2021) - KWG Resources Inc. (CSE: KWG) (FSE: KW6) ("KWG" or the "Company") ("KWG") has engaged Rail-Veyor Technologies Global Inc. and Cormorant Utility Services Ltd. for the preparation of Design Engineering Feasibility Proposals to construct an ore haulage system and electrical power transmission lines to the Ring of Fire and several contiguous remote communities.
The power line proposal will enable the Rail-Veyor proposal to be prepared on the basis of Hydro One electricity rates rather than the very high-cost diesel-generated alternative. The Rail-Veyor ore haulage system will facilitate the direct transport of chromite ore from underground, across the surface of mining claims staked and assessed for that purpose by KWG subsidiary Canada Chrome Corporation, along 330 kilometers. It has been proposed that the utility corridor assets may be vested in a Trust in order to be operated by the beneficiaries whose traditional territories host this infrastructure, so the provision of the Ring of Fire's mining transportation requirements can become a substantial and independent indigenous enterprise.
The Cormorant Utilities proposal will cost CA$2.4 million and the Rail-Veyor proposal US$1.2 million and will be paid for with treasury shares of Canada Chrome Corporation which may be tendered in payment for options to acquire KWG.A shares from treasury, at CA$7.95 per share. Subscriptions to the previously announced $5 million convertible debenture private placement are expected to be completed in early August.
About KWG:
KWG is the Operator of the Black Horse Joint Venture after acquiring a vested 50% interest through Bold Ventures Inc. which is carried for 10% (20% of KWG's equity in the JV) by KWG funding all exploration expenditures. KWG also owns 100% of CCC which staked mining claims between Aroland, Ontario and the Ring of Fire. CCC has conducted a surveying and soil testing program to assess the prospects for the engineering and construction of a railroad along that route between the Ring of Fire and 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, India, Indonesia, Japan, Kazakhstan, South Africa, South Korea, Turkey, and USA. The national phase filings are under review in each of those jurisdictions.
For further information, please contact:
Bruce Hodgman, Vice-President: 416-642-3575 ~ info@kwgresources.com
Forward-Looking Statements: Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and KWG disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any securities that may be described herein and accordingly undue reliance should not be put on such. Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/91350.