Massive Black Horse Chromite Discovery

Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%

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Message: Re: If you've got nothing to do...
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Dec 09, 2009 03:28PM

I've found this news release from July 13, 2006. I'm now pretty sure the new claims staked this past summer are in the area of these claims acquired from Pele. 35 new claims were staked and transfered to Debuts Diamonds in June and July 2009. I've searched the claim numbers and their location by Township and I believe it matches the area of Pele's Attawapiskat property.

KWG Acquires Pele's Attawapiskat Property


July 13, 2006

July 13th, 2006 - Montréal, Canada - KWG Resources Inc. (TSXV:KWG) announces that it has acquired from Pele Mountain Resources Inc. (TSXV:GEM) its Attawapiskat River Diamond Project. The Attawapiskat River Project is comprised of 47 mining claims covering more than 25,000 acres in the James Bay Lowlands of northern Ontario, adjoining KWG's MacFadyen Kimberlite project to the south-east, which in turn adjoins the De Beers' Victor Diamond Mine property to the south. KWG and De Beers recently concluded a mutual assistance agreement for the development of their properties.

The purchase consolidates a contiguous group of mining claims that cover the northwest extension of an important linear structure that hosts both the Victor Mine and KWG's diamond-bearing MacFadyen kimberlite pipes. Pele has filed assessment work exceeding $900,000 on the properties.

As consideration for the sale, KWG has paid a total of $1,012,786 which was satisfied by the issuance to Pele of 10,127,860 common shares of KWG at an attributed issue price of $0.10 per share and granted Pele a one percent net products royalty in the project. KWG retains the right to buy back up to half of the royalty for a total of $5 million. The KWG shares issued to Pele are subject to the standard four-month statutory hold period from the date of issuance, which shall run concurrently with a contractual one year hold period agreed to between Pele and KWG. Following the expiry of the contractual hold period, Pele has agreed to sell not more than 500,000 KWG shares in any consecutive five business day period. KWG shares offered for sale in excess of such weekly allowance are subject to KWG's right of first refusal.

As part of the purchase transaction, KWG has agreed, upon regulatory approval, to pay a finder's fee of 200,000 shares to Robert Robitaille of Timmins, Ontario, which will be subject to a four-month hold period from the date of issuance.

KWG recently concluded a consultation with the Attawapiskat First Nation community to provide its members with the opportunity to assess how its proposed exploration programs might affect that part of their traditional lands in which the MacFadyen Kimberlite claims are situate. A Memorandum of Understanding/Exploration Agreement on how such exploration might proceed has been developed and is presently under consideration by the Attawapiskat Band Council. It will be advised by the community's elders who constitute its Traditional Ecological Knowledge Committee.

SRV

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