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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 rallardon May 29, 2013 1:07pm
138 Views
Post# 21464067

Repost from Agora from Keep Digging

Repost from Agora from Keep Digging

KWG Longs,

Regarding the Capital Reorganization Resolution proposed by KWG management, I've read through all the postings over the last several weeks and please allow me to clarify: This is NOT a share consolidation, this is NOT a reverse share split, this is NOT Frank preparing to sell us off for a ridiculous Neil Novak price, there is NO involvement from Cliffs it is NOT some game or secret working that Cliffs has undertaken.

This is a thoughtful and skilful proposal by a wise management team that as demonstrated and continues to demonstrate thinking that is steps ahead of government, competitors and large U.S. iron ore pellet suppliers trying to break into chromite to save their business.

When we win the easement hearing we may be tasked with construction of the railway. To ensure that we are not dependent on government for funds for this (don't count on Wynne for anything, really), we may have to turn to the private sector. The private sector will invest indirectly (buy bonds or flow-thru shares in the railway) or wil invest directly in the company (buy shares of KWG). The private sector (institutional investors, banks, etc) are oftentimes barred from buying penny stocks (think Bre-X). Having the ability to roll-up shares in a 50 to 1 ratio (100 pennies rolled up to carry as a convertible loony) is effective in attracting the large investors (recall we are overwhelmingly retail investors in KWG) which is what we need for support and share price appreciation.

I have forwarded KWG's notice and management information circular to a securities lawyer of a Tier 1 Bay Street law firm for review and comment as part of my own due diligence. I share with you below part of his commentary and advice to me in response to some of the recent postings on this site:

1. Schedule D Article 3.1 protects you from dilution. This is a way to increase exposure of the company (to institutional investors) without issuing more shares.

2. Schedule D Article 5.1 allows free flow of shares between the current common share structure and the proposed capital reorganized structure. Share float can only remain unchanged.

3. Schedule D Article 1.1 - once the railway is built and we retain royalties, etc., expect this clause to come into effect and allow KWG to pay you dividends - this is a major point of attraction for institutional investors.

I have voted my +2 million shares with management and with confidence and I expect all KWG longs do the same.

All the best to all KWG Longs,

Keep Digging

 

Bullboard Posts