KWG Resources, Bold Ventures property agreement

2014-09-23 18:26 ET - Property Agreement

The TSX Venture Exchange has accepted for filing the documentation of KWG Resources Inc. relating to an arm's-length option agreement between the company and Bold Ventures Inc. dated March 1, 2013.

According to the option agreement, the company has the right to acquire 80 per cent of interest in chromite minerals identified (20 per cent in the case of non-chromite minerals) in four claims located in Ontario, known as the Black Horse property (also known as Koper Lake project), in consideration of the following obligations payable in four stages. At stage 1, the company will pay $1.5-million in option payments (of which $500,000 will be paid by the issuance of 10 million common shares at a deemed price of five cents per share) and $8-million for exploration expenses over a three-year period. At stage 2, the company will finance $700,000 in option payment plus the cost of a feasibility study. At stage 3, the company will pay $15-million in equal instalments, over an additional three-year period, with half of the amount payable in cash and the balance payable, at the company's option, in cash or by the issuance of common shares of the company at the then current market price. Any share issuance will be conditional to prior exchange approval. At stage 4, the company will agree to assume the obligation to pay up to 80 per cent of a gross metal royalty (GMR) varying between 2 per cent and 4 per cent depending upon the price of products sold.