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: No news is good news?
2
Feb 27, 2012 11:27AM
1
Feb 28, 2012 10:43AM
1
Feb 28, 2012 11:41AM

If indeed they had asked for approval of a reverse split at 50/1 they would not have gotten a lot of takers supporting their request.

This however is a "second" stock option which you can take advantage of or not. For those who do they will get one share for every 50 at a price that is 50 times the original share value. If a few large shareholders opt for this exchange then there will be a "new" market created for KWG at this higher share price. Those investors who like like to buy on margin will be able to invest in KWG and there is therefore an opportunty for new investment fund to start rolling into KWG at this higher price share level.

Of course we all hope any activity will increase, not decrease, the price of these new shares.

If that were to happen then we all benefit as the 2 share levels always remain at at the 50/1 exchange rate. Having the capability of converting your higher priced shares back to your original shares at the 50/1 conversion rate really sets this apart from any reverse split option.

I for one feel there is a chance for this to bring in new investment dollars resulting in an overall increase in KWG value and therefore benfiting all shareholders. It is a risk worth taking at this time.

Of course this is my interpretation of the new share structure and everyone has to decide for them selves if this seems like a worthwhile risk.

IMHO -Wishing

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