TORONTO, ONTARIO--(Marketwired - March 3, 2017) - KWG Resources Inc. (CSE:KWG)(CSE:KWG.CN)(FRANKFURT:KW6) ("KWG" or the "Company") is pleased to announce closing today of its previously announced private placement (the "Private Placement") of units (each, a "Unit") at a price of $0.021 per Unit (see the Company's news release dated February 9, 2017). The Corporation issued a total of 7,500,000 Units to accredited investors for aggregate gross proceeds of $157,500. Each Unit is comprised of one subordinate voting share of the Company (each, a "Subordinate Voting Share") and one full warrant (each, a "Warrant"). Each Warrant entitles the holder to purchase one Subordinate Voting Share at a price of $0.05 at any time within 60 months from the date of issuance of the Warrant.
The gross proceeds received by the Company from the sale of the Units will be used by KWG principally to improve its financial position, to pay the fees associated with this Private Placement and for general corporate overhead expenses.
All of the securities issued pursuant to this Private Placement are subject to a four (4) month hold period.
As the offering was over-subscribed, the Company has increased the offering by an additional $3,000,000 (142,857,142 Units) on the same terms. The Canadian Securities Exchange has provided relief from its policy regarding a minimum price of $0.05 per share.
About KWG:
KWG is the Operator of the Black Horse Joint Venture after acquiring a vested 50% interest through Bold Ventures Inc. which is carried for 10% (20% of KWG's equity in the JV) by KWG funding all exploration expenditures. 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. KWG subsidiary Muketi Metallurgical LP is prosecuting two chromite-refining patent applications in Canada, China, India, Indonesia, Japan, Kazakhstan, South Africa, South Korea, Turkey, and USA. The filings have been receipted in each of those jurisdictions.
