Noront Resources Ltd. NOSOF

Peterj99....All Info Directly from KWG M D & A, Sedar

[Dragon23]

I posted this exact info on KWG board on June 5th, 2021. Nothing changed to the best of my knowledge,



Someone posted here a while back that KWG had a Business Model. I sure hope so, because this retail shareholder wants some return at least.  I do have some concerns as to how their Business Model addresses:
 

1. Lack of  proven mineral resources. KWG Disclosure: Lack of Mineral Reserves - All of the KWG properties are considered to be in the exploration stage only and do not contain a known body of commercial ore. Mineral reserves are estimates and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized.
2. The Patent: KWG Disclosure: While the Company has been successful in moving its patent applications forward in some countries, that process is not yet complete; moreover, the Company has not yet achieved any commercial success with its technology. There is no assurance that such efforts will be successful or, if successful, will not subsequently be challenged and impugned. KWG has acquired the rights to certain intellectual property patent applications. Although the Company is confident that the applications will be successful and the patents will be issued, there is no assurance of such success or issuance. Moreover, there is no assurance that such rights will not later be attacked or be circumvented. The prosecution and maintenance of such applications and patents is expensive and there is no assurance that the Company will be able to secure, exploit, maintain or defend its intellectual property rights.
3. Debt. They certainly do not have the albatross of debt that Noront must deal with, but debt non-the-less. KWG recently eliminated some debt with 16 Debenture holders. KWG Disclosure: (As a result of the conversion the Company reduced its current liabilities by $5,180,860 and added 986,830 multiple voting shares to its issued and outstanding capitalization). Again, not the debt of Noront, but debt that necessitates share devaluation. At least one Debenture remains on the books to the tune of $500,000.00.  KWG Disclosure: A single unsecured convertible debenture which was issued in the principal amount of $500,000 on October 3, 2017, bears interest at 12% compounded annually and was due on October 3, 2019, but was extended to March 26, 2021. Interest is payable in Multiple Voting Shares issued at their volume weighted average trading price on the ten trading days prior to payment. The principal may be converted by the holder at any time, in whole or in part, into units at a rate of $21 per unit, with each unit being comprised of four Multiple Voting Shares and two warrants, with each such warrant enabling its holder to acquire one further Multiple Voting Share from treasury upon payment of $7.50 at any time prior to maturity (namely, until March 26, 2021). The Company is currently renegotiating the terms of this debenture with the debenture-holder.

I never mentioned their grandiose plan of a railroad or slurry pipeline. Are  their Debenture holders willing and able to finance such a massive undertaking? So far there are no indications of majors, or other deep-pocketed  backers.
 
Finally, kudos to our management team for making a little money on Noront shares! KWG Disclosure: On May 12, 2020, the Company purchased 62,500 Noront shares on the open market for cash of $8,240. On May 12, 2020, the Company transferred 60,500 Noront shares in settlement of a debt in the amount of $13,200. A gain of $5,223 was recognized on this disposition. NICE DAYS PAY! Someone please share this tidbit with Lou64, maybe Frank will 'school' him/her how to make some moola with Noront shares. 

Whoever the shares went to must of had great faith in Noront  that day. 

Don't  shoot the poser of questions here...I am a KWG shareholder just like you. The volatility of the ROF right now is most intriguing. And............Since KWG have initiated discussions with Wyloo!!!,....... who knows, but I expect an interesting and intense week ahead. 

Good Luck Everyone