KWG Debentureholder Agrees to Extend Due Date in Exchange for Ferrochrome Warrants
KWG DEBENTUREHOLDER AGREES TO EXTEND DUE DATE IN EXCHANGE FOR
FERROCHROME WARRANTS
Toronto, Canada, December 20, 2019 – The holder of a Convertible Debentures issued by KWG
Resources Inc. (CSE: KWG; KWG.A) (FRANKFURT: KW6) (“KWG” or the “Co mpany”) for
proceeds of $500,000 has agreed to extend its maturity until March 26, 2021. As consideration
for the extension, KWG will distribute ferrochrome delivery warrants (“Delivery Warrants”) to the
debenture holder and amend the redemption amount due and bearing interest as of December
19, 2019 to $525,000.
For each $35.00 principal amount of Convertible Debentures, the Debenture- holder will receive
Delivery Warrants exchangeable on a first -come aliquot basis for one ton of warehoused
ferrochrome. The terms of the Delivery Warrants will provide that they may be tendered by t heir
holders to receive ferrochrome from 1% of any future ferrochrome production from the Company’s
chromite mineral interests, if and when produced. The Company intends to set a ferrochrome
delivery standard for ferrochrome after processing to be approximately 52% chrome content with
carbon of 6% – 8%, silica not exceeding 1.5% and the remaining fraction being principally iron.
The Company proposes to list the Delivery Warrants for trading on the Canadian Securities
Exchange (the “CSE”) which, if implemented, could provide a liquid market for ferrochrome price
hedging. The Company is planning to proceed with a Rights Offering to meet a CSE listing
condition of demonstrating a sufficiently wide distribution of the Delivery Warrants. The Company
is planning to announce terms of the Rights Offering in early 2020.
In connection with the creation of the Delivery Warrants, the Company will undertake to provide
a security interest in its chromite mineral title to back the obligation for future delivery and will also
undertake that, should production of ferrochrome ensue in future from minerals recovered from
those mineral claims, 1% of all such production will be warehoused on an ongoing basis to provide
stocks of ferrochrome for delivery to warrant -holders wishing to take delivery of ferrochrome in
exchange for tender and cancellation of their corresponding Delivery Warrants.
KWG is a mineral exploration company with mineral exploration claims in the Ring of Fire area of
northwestern Ontario. The Company does not currently have any reserves (within the meaning of
National Instrument 43 -101) of chromite inasmuch as its mineral interests there are all in the
categories of measured, indicated and inferred resources and there is no assurance that the
Company will ever produce ferrochrome or chrome. KWG has a 30% joint venture interest in the
Big Daddy deposit which contains NI 43 -101 measured and indicated resources of 29.1 million
Tonnes of 31.7% chrome oxide and inferred resources of 3.4 million Tonnes of 28.1% chrome
oxide. The Company has a 50% interest in the Black Horse deposit which contains NI 43- 101
inferred resources of 85.9 million Tonnes of 34.5% chrome oxide.
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
PRESS RELEASE NO. 299
Subordinate shares issued & outstanding (CSE-KWG) 1,019,496,927
Convertible into Multiple-voting shares (300:1) equal to: 3,398,323
Multiple-voting shares issued & outstanding: 237,049
If all shares convert to Multiple-voting (CSE-KWG.A) 3,635,372
KWG also owns 100% of Canada Chrome Corporation which has staked clai ms 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 and an accelerant. KWG
subsidiary, Muketi Metallurgical LP, has received a patent for the direct reduction method in
Canada, South Africa and Kazakhstan and is prosecuting remaining patent applications in India,
Indonesia, Japan, South Korea, Turkey and the USA. It has also received a USA patent for
production of low carbon chromium iron alloys and a corresponding Canadian patent application
is expected to issue soon.
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 acc ordingly 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.