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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

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Post by grim86on Jul 14, 2015 4:54pm
152 Views
Post# 23923531

From the website

From the website Risks Related to the Corporations Business Additional Funding Requirements and Potential Dilution KWG has no current or foreseeable prospect of generating significant revenues. Accordingly, the success of the Corporation is dependent, among other things, on obtaining sufficient funding to enable the Corporation to explore and develop its properties and to carry out its current plans. There can be no assurance that the Corporation will be able to obtain adequate financing in the future or that the terms of such financing will be favourable. Failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development of its projects with the possible loss of such properties. The Corporation will require new capital to continue to operate its business and to continue with exploration on its mineral properties, and there is no assurance that capital will be available when needed, if at all. It is likely such additional capital will be raised through the issuance of additional equity, which will result in dilution to the Corporations shareholders. The issuance of Common Shares upon the exercise of options, compensation options and/or warrants will dilute the ownership of the Corporations current shareholders. KWG may also issue additional securities convertible into Common Shares in the future, the conversion of which would result in further dilution to the shareholders of the Corporation. Continuation of Operating Losses The Corporation does not generate operating revenues upon which investors may rely. Consequently, investors will have to rely on the expertise of the Corporations management. Further, the Corporations properties are in the exploration stage and are not commercially viable at this time. The Corporation does not have a history of earnings or the provision of return on investment, and there is no assurance that it will produce revenue, operate profitably or provide a return on investment in the future. The Chromium IP Transaction There are no guarantees that a patent will be granted in respect of the Chromium IP, or that the processes described in connection therewith are effective. It is also possible that a third party may have prior or complimentary intellectual property rights that may be infringed by the exploitation of the processes described in the provisional patent applications acquired by KWG in the Chromium IP Transaction. It is hoped that any patents ultimately granted from the Chromium IP will prevent others from exploiting the claimed technology. However, no formal assessment of this potential has been made. Proposed Railway Extension The proposed railway leading in and out of the Koper Lake Project and the Big Daddy Project is currently in the planning stage and accordingly remains very preliminary in nature. In order to successfully develop such a railway, CCC will be required to follow a consultation process with relevant stakeholders before any such railway can be constructed. Notwithstanding that CCC has staked the claims on which it would expect the railway to be developed, many approvals, permits and other clearances are required to build a railway in general. There is no guarantee that any or all of the required permits for the construction of the proposed railway will be granted and even if such permits are granted, there is no guarantee that financing will be available in the future to construct the proposed railway.
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