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.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

KWG Resources Inc C.CACR

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

KWG Resources Inc. is a Canada-based exploration stage company. It is focused on acquisition of interests in, and the exploration, evaluation and development of deposits of minerals including chromite, base metals and strategic minerals. It is the owner of 100% of the Black Horse chromite project. It also holds other area interests, including a 100% interest in the Hornby claims, a 15% vested interest in the McFaulds copper/zinc project and a vested 30% interest in the Big Daddy chromite project. It has also acquired intellectual property interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. It also owns 100% of Canada Chrome Corporation, a business of KWG Resources Inc., (the Subsidiary), which staked mining claims between Aroland, Ontario (near Nakina) and the Ring of Fire. The Subsidiary has identified deposits of aggregate along the route and made an application for approximately 32 aggregate extraction permits.


CSE:CACR - Post by User

Bullboard Posts
Post by oreelseon Sep 20, 2012 1:18pm
237 Views
Post# 20391581

Re KWG on Agoracom

Re KWG on Agoracom
Rank:[?]
Vice President
Points:[?]
1279
Rating:[?]
Votes: 42 Score: 3.1
  • Currently 3.2/5 Stars.
Did you know?You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.

Another brain wave from my evil twin

posted on Sep 15, 12 12:37AM

Sorry insula...if you really look at the intent behind the expropriation...you will discover the grounds upon which the compensation argument can be made...I honestly don't know what the amount will be, but it might not all be in $$$...it might be in kind or a combination of both.

You really have to look at it from the perspective that the Gov is doing this to make a profit (Govs are not supposed to compete with private industry) and to enable other mining companies to make a profit so that they in turn will pay taxes back to the province...does that sound like the public good or public access when in fact the road will be for exclusive use by corporate users.

I personally think that Frank will be able to make that argument and get fair compensation for all assets that are being re-possessed...

As an example but not necessarily a prediction:

the mining claims of the NS corridor (CCC) say $30 mil

the work already accomplished on the claims say $20 mil

the aggregate at half price for RR or road const. say $500mil

and goodwill, for lost future profits say $150mil

total $ 700 mil or approx $1.00 per share

add another 10% for all FNs affected by the NS corridor as well as the FNs who will lose because of the EW route not being chosen and you have a workable solution. Let's not forget that as the ROF develops and more mines come on-line, for years to come, revenues for the province will increase exponentially...IMHO to a level where road as well as RR will be justifiable. The trick is to play those cards in the right order.

This is just an example to illustrate how the breakdown could be done and that an argument could be made to question the premice of "public good or access". KWG could keep 5% for future operations ($50mil), continue on with Debuts Diamonds and other exploration. The rest or $0.95 of compensation per share ($650mil) could be paid out as a special dividend. Then KWG can put up their 30% of Big Daddy up for sale to see who comes knocking and how much Cliffs is willing to pay in order not to share the chromite profit$$$.

I am pretty sure that the feds will kick-in at least $500mil (possibly a Bil) towards the RR or road (EA will most likely recommend the RR)...that would leave $500mil for the prov to pay and the balance of 500mil for the corporate users to kick in order to obtain their respective preferential rate for shipping, whether road or RR.

I am not saying that these numbers are realistic or probable...I am just saying that the province will have to give consideration to all these factors if they want this whole thing to pass the test of public opinion. I think I could live with that kind of scenario...Pear3

Good luck to all KWG longs....Le Penseur

Bullboard Posts