KWG Announces Notice of Proposed Debenture Issue and Conversion of CCC Equity
NOTICE OF PROPOSED DEBENTURE ISSUE AND CONVERSION OF CCC EQUITY
Toronto, Canada, January 22, 2021 – KWG Resources Inc. (CSE: KWG; KWG.A)
(FRANKFURT: KW6) (“KWG” or the “Company”) announces a proposed financing in which it
intends to issue Convertible Debentures to raise up to $1.1 million. Each debenture will be
convertible at any time at the option of its holder, in whole or in part, into units (each a ‘Unit’) at
$6.25 each, with each Unit being comprised of one KWG.A multiple voting treasury share and
one warrant. Each warrant will be exercisable to acquire at any time within three years one further
KWG.A multiple voting treasury share for $7.85. The debentures will mature in 2 years and will
bear interest at 6% payable annually in additional such Units, until maturity or discharge.
The Company also announces that, under the terms of the agreement made between its wholly
owned subsidiary, Canada Chrome Corporation (‘CCC’), and Tony Marquis on January 18,
2021, Mr. Marquis may, over the two-year term of the agreement, earn up to a 10% interest in
CCC, for the purpose of which the total value of CCC was deemed to be valued at $16.8 million.
The agreement may be terminated by either party in certain circumstances, provided that a
minimum of six months of installment payments are payable in any event. A ll or any part of any
such interest in CCC previously earned and vested in Mr. Marquis may be tendered in payment
for KWG.A multiple voting treasury shares at $3 each.
Mr. Marquis has agreed to be the President and Chief Operating Officer of CCC, a wholly owned
subsidiary of KWG, 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. Mr. Marquis has been a top tier executive with both Canadian National Railroa d and
Canadian Pacific Railroad, where he played an integral role in the two most successful railroad
turnarounds in North America. At both companies, he worked closely with his mentor, the
legendary Hunter Harrison, who led both railroads to becoming the most efficient in the industry.
About KWG:
KWG is the Operator of the Black Horse Joint Venture (‘JV’) after acquiring a vested 50% interest
through Bold Ventures Inc (‘Bold’) from Fancamp Exploration Ltd (‘Fancamp’). KWG funds all JV
exploration expenditures and Bold is carried for a 20% interest in KWG’s interest. KWG has also
received patents in Canada, South Africa and Kazakhstan and is prosecuting patent applications
in India, Indonesia, Japan, South Korea, Turkey and the USA for the direct reduction of chromite
to metalized iron and chrome using natural gas and an accelerant. It has also received a USA
patent for production of low carbon chromium iron alloys.
For further information, please contact:
KWG
PRESS RELEASE NO.308
Subordinate shares issued & outstanding (CSE-KWG) 1,020,332,127
Convertible into Multiple-voting shares (300:1) equal to: 3,401,107
Multiple-voting shares issued & outstanding: 517,049
If all shares convert to Multiple-voting (CSE-KWG.A) 3,918,156
Bruce Hodgman, Vice-President: 416-642-3575 ~ [email protected]
Forward-Looking Statements: Information set forth in this news release may involve forward- looking statements under
applicable securities laws. The forward -looking statements contained herein are expressly qualified in their entirety by this
cautionary statement. The forward-looking statements included in this document are made as of the date of this document
and KWG disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required by applicable securities legislation. Although
management believes that the expectations represented in such forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation
of an offer to buy any securities that may be described herein and accordingly undue reliance should not be put on such.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
CSE) accepts responsibility for the adequacy or accuracy of this news release.