Massive Black Horse Chromite Discovery

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

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Message: KWG SP held back by PP?

Approx 45 minutes following the trade resumption, KWG SP seems to settle to $0.06/s (max 0.065) with a total volume ~2.7M shares which is not as phenomenal as expected for this kind of news. Taking a breather?

One potential reason: The PP @ $0.055/s, for a min of $4M and max $10M (and wts at 0.10). Once the PP has been fully (over?) subscribed the SP, and the news fully digested, the SP would be expected (speculation from my part) to move up. Also, it would be expected that people would trample over each other to get in this deal (tax break and all). In addition, the wts (some 120M, if the PP is over-subscribed would bring in >$12M.

At least, a fully subscribed PP would put in KWG treasury, in a few weeks, ~$10M which would help Frank to do good things for the company (and us). Expect another NR on this, and perhaps another NR on a deal with CLF. If the SP gets over $0.10, then the wts would rake in ~$12M in the near future, as indicated above. The wts are not under the flow-through scheme, hence spending of this $12M would not be restricted in R&D?

goldhunter (in speculation mode)

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