TORONTO – KWG Resources has announced plans to issue both flow-through shares and units in a bid to raise between $4 million and $10 million. The money will be used for exploration at the Koper Lake and Fishtrap Lake projects, to continue development of new methods of production chromium-iron alloys, and to augment the company’s working capital.
The flow-through portion of the offering is selling shares at a price of $0.055 per share.
The non-flow-through portion includes units comprised of three common shares of KWG and two share purchase warrants. The warrants will allow the holder to buy a KWG share within the next two years at a price of $0.10 per share. The units are priced at $0.165 per unit.
Also last week, KWG announced that its subsidiary Canada Chrome Corp. is appealing the Ontario divisional court ruling that waived the company’s consent in an application for an easement to build a road over its mining claims by Noront Resources to build a road across claims that CCC owns. Noront lost the first round of the argument when the Ontario mining recorder sided with KWG. Noront appealed, and was told CCC’s consent was not necessary to pursue the road. Now the argument is back in KWG’s court.
The Koper Lake claims, that include the disputed ones, contains the Black Horse chromite deposit. KWG can earn 80% of the Black Horse deposit by conducting work under the terms of an option agreement with Bold Ventures and Fancamp Exploration.
For more information about the Koper Lake project, click here.