Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

KWG Resources Inc C.CACR

Alternate Symbol(s):  C.CACR.A | KWGBF

KWG Resources Inc. is a Canada-based exploration stage company. The Company is engaged in the discovery, delineation, and development of chromite deposits in the James Bay Lowlands of Northern Ontario. It is focused on two projects, which include Black Horse Project and Big Daddy Project. The Company’s Black Horse Project is located approximately 280 kilometers north of Nakina, Ontario, which contains the Black Horse chromite deposit, including over 1,024 hectares covered by four unpatented mining claims. The Big Daddy Project is located approximately 280 kilometers north of Nakina, Ontario, which contains the Big Daddy chromite deposit, including over 1,241 hectares covered by seven unpatented mining claims. The Company also owns a 30% interest in certain mining property claims contiguous to McFauld’s Lake in Ontario. Its subsidiaries include Canada Chrome Corporation, SMD Mining Corporation, Canada Chrome Mining Corporation, and Muketi Metallurgical General Partner Inc.


CSE:CACR - Post by User

Bullboard Posts
Comment by Pear3on Jan 15, 2016 10:43am
135 Views
Post# 24461783

RE:RE:RE:RE:RE:RE:My plan

RE:RE:RE:RE:RE:RE:My planHey Marlboro...thanks for the feedback. You wrote: The drawback with that scenario, I fear, is that $6.77 per share for a billion shares put KWG as being valued at over $6b. Glencore's market cap is only $22b I agree with you that very few companies would be big enough to offer that kind of take-over (friendly) price and probably none would. That doesn't stop the shareprice from trading in those ranges if it's supported by healthy revenues. I was presenting those numbers so that some of our readers can have an idea of what KWG would be worth if those three things were in place. As such they can also be aware of what other large companies are looking at when assessing whether or not they want to invest in the ROF and costing out the long term assets. We are talking about world class numbers and many companies have taken notice. My good twin "Le Penseur" had a very good conversation with Frank at PDAC this year. Frank told him that he wanted to set up KWG for the long term i.e. money for his grandchildren and ours. I suspect that this was the reason for the 3 year standstill agreement; in essence it will give time for major advances in the project to have a dramatic effect on the share price while still allowing for a friendly offer in the process...but think about it. If you are a large company ex. Exstrata and you are watching the ROF story unfold. Wouldn't you already have an idea of what you are willing to pay for such an asset if all the road blocks are taken care of by someone else. Add to this the Chinese partner who has all the capabilities to build the required infrastructure. I sincerely think that Frank knew we would need protection as the developments were announced. For Cashin17....Way back in 2010, the capacity of the railroad was comfortably pegged at 1 to 3 million tons and more capacity depending on how much double track they would lay so as to enable north and south bound trains to bypass each other. This amount also depended on how many mines would open and the type of shipments required. To conclude...I'm not saying that we will be paid that much for our shares in a take-over scenario. I'm saying that we have to start thinking collectively in those terms so that we don't give in to pennies instead of a couple of dollars or more. We can offer ourselves some protection if we resist the low ball offer and hold out for more. I know Frank felt very comfortable with KWG's position. We have to remember that they have been talking with the Chinese for a couple of years and the research has been available to them for a few months. It's my "unconfimed" impression that he is going to China with a good idea of what the deal might look like. Like Marlboro said, it would be great if we could see long term residuals (royalites) from the RR bulk transport as well as an NSR from the patent licenses sold and of course the revenues from the mine(s). I think that the attractiveness of long term residuals will attract more and more investors when milestones start to be unveiled. If we survive that long, as a company without being taken over, then the stock will be worth much more than we ever imagine, but I think that somewhere along the way, during the development, we will be receiving a friendly offer that will be hard to resist. Best of luck to all KWG longs Pear3
Bullboard Posts