KWG Resources Announces Final Tranche of Convertible Debenture Placement
KWG RESOURCES ANNOUNCES FINAL TRANCHE OF CONVERTIBLE
DEBENTURE PLACEMENT
Toronto, Canada, June 11, 2019 - KWG Resources Inc. (CSE: KWG; KWG.A) (FRANKFURT:
KW6) (“KWG” or the “Corporation”) has applied for Canadian Securities Exchange approval f or
the private placement of a final tranche of $3,147,444 of debentures convertible at the option of
KWG into units with a deemed value of $21 per unit (each a “Unit”). Each subscriber will receive
an option to acquire an equal amount of additional debentures at any time within four (4) months
from closing.
Each Unit is comprised of four (4) KWG.A multiple voting shares and four (4) multiple voting share
purchase warrants, with each such war rant enabling its holder to acquire one further KWG.A
multiple voting share from treasury upon payment of $7.50 at any time on or before December
15, 2019. The debentures bear interest at a rate of 12% per annum, accruing daily, compounding
annually and payable at the earlier of maturity, redemption or conversion, in KWG.A multiple
voting shares from treasury at their volume-weighted average price for the ten trading days prior
to payment. The debentures secure repayment of the principal, plus interest ear ned thereon to
the date of payment, plus a premium of 20% of the original principal amount payable immediately
following issuance of the debenture by the issuance of Units with a deemed value of $21 per Unit.
At any time and from time to time, KWG will hav e the right to redeem the debenture in whole or
in part by payment in cash, or convert the debentures in whole or in part into Units.
All of the securities to be issued pursuant to this Private Placement are subject to a four (4) month
hold period. Closing of the final tranche of the private placement will bring to a total of $6.5 million
the value of these convertible debentures then issued (see: press releases #273 issued
December 18, 2017 and #293 issued March 18, 2019).
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 also owns 100% of Canada Chrome Corporation 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 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.
KWG
PRESS RELEASE NO. 294
Subordinate shares issued & outstanding (CSE-KWG) 1,019,056,527
Convertible into Multiple-voting shares (300:1) equal to: 3,396,855
Multiple-voting shares issued & outstanding: 222,425
If all shares convert to Multiple-voting (CSE-KWG.A) 3,619,280
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 suc h.
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.