KWG To Acquire Ring Of Fire Royalties

Montreal, Canada, Thursday – KWG Resources Inc (TSXV: KWG) has agreed to acquire from the holder half of a 2% net smelter royalty (1%) underlying the mineral claims of Freewest Resources Canada Inc (TSXV: FWR) (“Freewest”) including those in which KWG and Spider Resources Inc (TSXV: SPQ) are earning a joint venture interest. The claims include the Freewest Black Thor chromite discovery and the KWG and Spider Big Daddy chromite discovery. These are located in the Ring of Fire in the James Bay Lowlands of Northern Ontario.

On closing, KWG will acquire from the vendor half of the 2% NSR (1%) on any minerals produced from the claims but not the remaining 1% which is subject to a prior purchase option in favour of Freewest. Under the prior purchase option, Freewest may purchase the remaining 1% NSR for $1,000,000 at any time and KWG and Spider hold an undivided interest in such right as it affects the claims optioned from Freewest and in which KWG and Spider are earning a joint venture interest.

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The value of any existing or further NSR agreements is still up in the proverbial "air".

geoprof