MONTREAL, QUEBEC, Aug 02, 2011 (MARKETWIRE via COMTEX) -- KWG Resources Inc.CA:KWG0.00%has agreed to sell its net smelter royalty interests ("NSR") in the Black Thor, Black Label and Big Daddy chromite deposits to Anglo Pacific Group PLCCA:APY-6.00%UK:APF+1.79%for US$18 million. The sale agreement was completed today.

"The sale of this royalty for $18 million is another vote of confidence for the future and value of the Ring of Fire and more specifically the value of its chromite deposits," said KWG President Frank Smeenk.

The sale of the NSR will be effected by way of the sale of shares of 7207565 Canada Inc., the KWG subsidiary that holds the royalty. Half of the purchase price will be paid on closing, with the remaining 50% being held in escrow for a period of three months as security for KWG's indemnification obligations to the purchaser in connection with the transaction. Closing is subject to satisfaction by both parties of closing conditions customary for a transaction of this type.

KWG has a 28% interest in the Big Daddy deposit and may earn an additional 2% interest in it under an option agreement to create a joint venture with Cliffs Natural Resources Inc.CLF+0.12%FR:CLF-2.42%. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario where the Trans Canada line of the Canadian National Railway can be connected. KWG's subsidiary Debut Diamonds Inc. holds nine diamond exploration projects, three of which are presently undergoing assessment programs valued at almost $3 million