TORONTO, ONTARIO--(Marketwired - April 29, 2016) - KWG Resources Inc. (CSE:KWG)(FRANKFURT:KW6) ("KWG") has received and accepted subscriptions of $390,000 to close the private placement of units previously announced, for a total of $1.75 million including $0.6 million in settlement of amounts payable to directors, officers, employees and consultants. Each unit 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 has agreed to pay finder's fees equal to 604,500 units on the further subscriptions. The proceeds will be used to pay the initial costs of the feasibility study to be undertaken by China Railway First Survey & Design Institute Group Co., Ltd. and for working capital.
The Company also announced that it will issue 141,250 common shares to RBL Communications Inc. for the last payment under the shares for services contract announced January 21, 2015. In addition the Company will issue 1,808,000 shares to Agora Internet Relations Corp. for its services in the production of a documentary to chronicle the history of the Ring of Fire.
KWG applied for and was granted relief to the CSE's minimum price rule. All shares issued have a hold period of four months.
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. The Company is prosecuting patent applications for both the direct reduction method and for a method of producing high purity chromium metal by continuous smelting.
Shares issued and outstanding: 960,868,218