TORONTO – KWG Resources has entered into an agreement to acquire 50% of two US provisional patent applications for the treatment of chromite ores. One relates to the production of chromium-iron alloys directly from chromite ore and the other to the production of low carbon chromium-iron alloys directly from chromite concentrates. Known as the chromium intellectual property transaction, the deal gives KWG the right to use the provisional patent applications as the basis for filing additional patent applications in the United States, Canada, and elsewhere throughout the world.
A limited partnership between KWG and the vendor is to be created to complete the transaction as well as the development and exploitation of the processes. The manager of the partnership is to be a wholly owned subsidiary of KWG.
In exchange for 50% of the intellectual property, the vendor will receive 25 million units of KWG. Each unit will consist of one KWG common share and one common share purchase warrant exercisable at a price of $0.10 for five years from the closing date. KWG has the option to acquire a further 25% interest in the property by issuing an additional 12.5 million units to the vendor within one year from the closing. KWG may take up a second option covering the remaining 25% by issuing 12.5 million more units.
In November 2013, KWG saidresults of ongoing metallurgical test work to determine the thermodynamics of metalizing the chromite from the Black Horse deposit by its reduction with natural gas were encouraging.
Please visit KWGResources.com to learn more.