Update Respecting Trading in KWG Shares
TORONTO, ONTARIO--(Marketwired - Mar 17, 2015) - KWG Resources Inc. (CSE:KWG)(TSX VENTURE:KWG)(FRANKFURT:KW6)(OTCBB:KWGBF) announces that its Board of Directors has approved the delisting of its common shares from the TSX Venture Exchange (the "TSXV") and that it is in the process of making an application to the TSXV concerning such delisting.
As described in KWG's Press Release of March 13, 2015, the delisting is necessary in order for KWG to be in a position to satisfy its obligations under the option agreement with Bold Ventures Inc. ("Bold") (TSX VENTURE:BOL) in respect of the Black Horse claims. KWG's management and Board determined that it was in the best interest of its shareholders to continue to earn an 80% interest in Bold's interest in the chromite resources comprising the Black Horse claims and a 20% interest in their non-chromite resources and to husband its cash resources by issuing 35,000,000 shares of KWG rather than making a cash payment of $700,000, especially in light of the difficulty in raising equity in the current markets. Given that the value of the shares being issued is $0.02 per share (reflecting current market prices) and that the TSXV does not permit listed issuers to issue shares at less than $0.05 each in respect of this type of transaction and that the TSXV would not grant KWG a waiver from such requirement, management and the Board concluded that it was necessary to delist its shares from the TSXV in order to continue to maintain its right to earn such interest in the Black Horse claims.
KWG's common shares have been inter-listed for trading on the Canadian Securities Exchange ("CSE") and TSXV for a number of years. Recently the CSE market facilities were made available to all of Canada's discount brokerage trading services. It is anticipated that following the delisting of KWG's shares from the TSXV, shareholders, investors and brokers will experience no disruption in their ability to trade such shares through the facilities of the CSE and that trading liquidity will not be adversely affected. In addition, such change in trading markets is not expected to affect KWG's ability to raise capital. Additionally, KWG Shares will continue to be traded on the facilities of the Frankfurt Stock Exchange and on the OTC Market in the USA.
About KWG: 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 Canada Chrome Corporation which has staked claims and conducted a $15 million 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 patent interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. The company has determined that the reduction method can be employed to metalize finely ground chromite which may be recovered from slurry delivered to Aroland in an underground pipeline constructed within the Canada Chrome claims.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that KWG believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding payments to be made under the option agreement with Bold, and the voluntary delisting of KWG's common shares from the TSXV) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of KWG based on information currently available to it. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of KWG to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on KWG. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the inability of KWG to meet the voluntary delisting requirements of the TSXV and the delisting of KWG's shares from the TSXV adversely affecting trading liquidity, trading prices or the ability of KWG to raise equity capital on favourable terms or at all. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, KWG disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although KWG believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Shares issued and outstanding: 778,163,798
