KWG up 18% on Ring of Fire railway news

The new railway will form part of the Ring of Fire mining infrastructure and will be located within mining claims held by of KWG.

Trading in KWG Resources Inc. (TSX: V.KWG, Stock Forum) was halted Friday for an announcement by the General Chairperson’s Association (GCA), representing unionized employees at Ontario Northland Transportation Commission (ONTC).

When trading resumed, the stock was up 18% to 6.5 cents, leaving KWG with a market cap of $43.6 million, based on 671 million shares outstanding. The 52-week range is 10.5 cents and 5 cents.

The GCA has announced a revitalization plan for ONTC that includes the proposed construction of a rail link to the Ring of Fire mineral deposits in the James Bay Lowlands, where KWG has extensive claims.

The new railway will form part of the Ring of Fire mining infrastructure and will be located within mining claims held by Canada Chrome Corporation, a wholly owned sub of KWG Resources. The GCA’s proposal calls for the railroad and other assets of the provincially-held ONTC, along with the new Ring of Fire railway, to be transferred to a new ports authority to be operated under the Canada Marine Act.

Canada Chrome has made a significant investment to study and secure mining claims.

KWG said it intends to continue discussions with the GCA and other stakeholders to advance this initiative, with the goal of creating the transportation links necessary for mining to proceed in the Ring of Fire, and thereby deliver new economic and job opportunities in Northern Ontario. Other stakeholders involved in the discussions include First Nations communities and Nipissing-Timiskaming MP Jay Aspin.