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KWG Announces Closing of First Tranche of Its Convertible Debenture Private Placement

Apr 25, 2023

KWG Resources Inc. closed the first tranche of a private placement valued at $3,000,000 of convertible debentures. This first tranche was comprised of an aggregate of $959,590 of Debentures. KWG anticipates completing a second tranche of the Private Placement within the next several days.

Debentures are convertible into units with a deemed value of $3.00 per unit at the holder's option at any time prior to payment in cash. The Debentures mature on April 24, 2026  and bear interest at 5% per annum, accruing daily, compounding annually on the date on which the first Debenture of the Series CD-2023 Debentures is issued and payable on each anniversary of the date of First Issuance and at the Maturity Date or conversion, such payment to be made either (i) at the KWG's option, by payment in cash (other than in the event of a conversion) or (ii) by the issuance of units at a deemed value of $3.00 per Unit. 

Each unit will be comprised of one KWG.A multiple-voting share and one share purchase warrant enabling its holder to acquire one further KWG. A multiple-voting share from treasury upon payment of $3.00 exercisable at any time on or before the earlier of (i) the third anniversary of the Maturity Date or (ii) two (2) business days after completion of a take-over bid or a merger, amalgamation, arrangement or other form of business combination as a result of which the shareholders of the company immediately prior to such bid or business combination do not own a majority of votes attaching to the voting securities of the company or of the resulting issuer or do not have the power to elect a majority of the directors of the company or of the resulting issuer, as the case may be, after completion of such bid or business combination.

KWG paid a finder's fee of 5% of the aggregate of Debentures sourced by finders payable in Units at deemed price of $3.00 per Unit.

The proceeds received by KWG  from the sale of the Debentures will be used for the costs and fees associated with the private placement, for general corporate overhead expenses including paying current debts and liabilities and for payment of exploration and other operating expenses.

All the securities to be issued pursuant to this tranche of the Private Placement are subject to a four month hold period.

KWG is the owner of 100% of the Black Horse chromite project (formerly part of Fancamp's "Koper Lake-McFaulds" properties) in which Bold Ventures Inc. is carried through exploration of the former Fancamp claims for 10% of the chromite project and 40% of the other minerals. 

KWG also holds other area interests including a 100% interest in the Hornby claims, a 15% personal stake in the McFaulds copper/zinc project and a vested 30% interest in the Big Daddy chromite project. 

KWG also owns 100% of Canada Chrome Corporation which staked mining claims between Aroland, Ontario (near Nakina) 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 covering the claims staked by CCC. CCC engaged Cormorant Utilities and Rail-Veyor Technologies for engineering proposals for the construction of a transportation and utility corridor within the route and has received those proposals. KWG has also 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 has acquired two chromite-refining patents in Canada and one in each of the USA, South Africa and Kazakhstan, and is prosecuting an application in Turkey.

For further information, please contact: 
Bruce Hodgman, Vice-President:             416-642-3575 info@kwgresources.com

Image KWG Map of Proposed Railway for RoF

Tags: Northern Ontario / Exploration / Metals / All Articles