KWG Announces receipt of an Electrical Infrastructure Capex Report from OneLine Engineering, Engineering Branch of EPTCON Ltd., a Cormorant Utility Services Company
RING OF FIRE ELECTRICAL INFRASTRUCTURE CAPEX STUDY FINDS ELECTRIFICATION OF
MARTEN FALLS, WEBEQUIE, EABEMATOONG, NESKANTAGA AND NIBINAMIK FIRST
NATIONS ECONOMICALLY FEASIBLE WITH RAIL-VEYOR TRAMWAY INSTALLATION
Toronto, Canada, January 4th, 2022 - KWG Resources Inc. (“KWG” or the “Company”) (CSE: KWG;
KWG.A) (FRANKFURT: KW6) and Canada Chrome Corporation (“CCC”) are pleased to announce
their receipt of an Electrical Infrastructure Capex Report from OneLine Engineering, Engineering Branch
of EPTCON Ltd., a Cormorant Utility Services Company (the “Electrification Plan”).
The report not es that previous project financings of such infrastructure capital cost were based on 30-
year amortization for debt at an interest rate of 5% per year in 2012, when the Bank of Canada overnight
rate was 1% per year. The current overnight rate of ¼% per year and the extent of resources in the Ring
of Fire can be expected to contribute positively to the economic feasibility of the Electrification Plan so
that user rates can be maintained at very attractive levels over the economic life of the infrastructure
assets and the resources that may thus be developed in the Ring of Fire.
The Electrification Plan states, “we suggest that from government alone, the amount of support for the
capital cost of the proposed infrastructure is more than $1.5 billion. ” The Plan estimates Main Corridor
Electrical Infrastructure Capital Cost at $960.5 million and the Indigenous Community Electrical
Infrastructure Cost at $788.1 million. The Main Corridor would provide electricity for mining operations at
the Ring of Fire and for operation of the Rail -Veyor ore haulage tramway system from the Company’s
proposed mine in the Ring of Fire along a 330-kilometer corridor to a proposed processing or
transshipment location near Nakina, Ontario. The Indigenous Communities Connections would connect
the First Nations communities of Marten Falls at Ogoki Post, Webequie, Eabematoong at Fort Hope,
Neskantaga at Lansdowne House and N ibinamik at Summer Beaver, to the Ontario power grid and
optical fiber networks and would eliminate diesel-generation except in outage emergencies.
The Company is also pleased to announce that it continues in discussions with newly-incorporated The
Gitchiziibii Company Inc., which has exressed its interest in managing the creation of a Trust for
members of the Matawa and Mushkegowuk First Nations. The Trust is being designed to be endowed
with the beneficial interests in the infrastructure assets required for mining in the Ring of Fire. The
Gitchiziibii Company, KWG and C CC are currently planning an application for designation of the Rail -
Veyor ore haulage tramway system as mining works under the Ontario Mining Act in preparation for
flotation of a bond issue for construction financing. it is anticipated that the Electrification Plan will form
part of the application to the Ontario Land Tribunal.
About KWG:
KWG is the Operator of the Black Horse chromite project 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 s taked 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
KWG
PRESS RELEASE NO.328
Subordinate shares issued & outstanding (CSE-KWG) 1,030,269,327
Convertible into Multiple-voting shares (100:1) equal to: 10,302,693
Multiple-voting shares issued & outstanding: 5,889,497
If all shares convert to Multiple-voting (CSE-KWG.A) 16,192,190
of Fire and Aroland, Ontario. 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 pr operty 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 the USA and in South
Africa and is prosecuting an application in Turkey.
For further information, please contact:
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.