KWG Acquires 100% of Chromium Intellectual Property29 Jun 2015, Categories: CNSX, KWG Resources, Metals & Mining
TORONTO, ONTARIO–(June 29, 2015) – KWG Resources Inc. (CSE:KWG)(FRANKFURT:KWG6) (“KWG”) has now acquired one hundred percent of the ownership rights in two United States provisional patent applications relating to the production of chromium iron alloys directly from chromite ore, and the production of low carbon chromium iron alloys directly from chromite concentrates (the “Chromium IP”) announced on April 21, 2014.
The vendor assigned its remaining fifty-percent interest in the Chromium IP in exchange for 25 million units of KWG (each, a “Unit“), with each Unit comprising one common share of KWG and one common share purchase warrant of KWG exercisable at a price of $0.10 for 5 years from closing. The Chromium IP includes the right to use these provisional patent applications as the basis for filing additional patent applications in the United States, Canada and elsewhere worldwide.
“With the support recently demonstrated by Minister Rickford and the scientists of Natural Resources Canada it became clear that owning all of this intellectual property now would put us into a better situation for further investment into testing and commercialization,” said KWG President Frank Smeenk. “It was very encouraging to learn that our national government was so well-informed on the economic potential of the Ring of Fire chromite resources and the reduction technology that we are developing, in workshops held in Ottawa last week.”
KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program, originally for the engineering and construction of a railroad to the Ring of Fire from Aroland, Ontario. KWG subsequently acquired patent interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. The company has determined that the reduction method can be employed to metalize finely ground chromite which may be recovered from slurry delivered to Aroland in an underground pipeline constructed within the Canada Chrome claims.
Cautionary Note Regarding Forward‐Looking Statements: This Press Release contains or refers to “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”. All information, other than information regarding historical fact that addresses activities, events or developments that KWG believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this Press Release is subject to a number of risks and uncertainties that may cause the actual results of KWG to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, KWG. Should one or more of these risks and uncertainties, such as: the actual results of current exploration programs, the general risks associated with the mining industry, adverse changes in commodity prices, currency and interest rate fluctuations, increased competition and general economic and market factors, the risk that the new method of refining chromite ore into ferrochrome by means of natural gas that is the subject of the Chromium IP Transaction does not prove efficient or economical, the scope, likelihood of grant, enforceability, infringement, freedom to operate, and commercial value relating to the patent applications to be used to support the commercialization of the Chromium IP, the grant or approval of a patent on any invention disclosed in the patent applications relating to the commercialization of the Chromium IP, and any expected benefit of commercialization relating thereto occur, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward‐looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward‐looking statements.
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