Business
KWG Announces Creation of $50 Million Ring of Fire Flow-through Limited Partnership with Option for Possible Future Exchange into 'Ferro' Cryptocurrency
Toronto, Ontario--(Newsfile Corp. - March 5, 2018) - KWG Resources Inc. (CSE: KWG.A) (CSE: KWG) (OTC: KWGBF) (FSE: KW61) ("KWG") is pleased to announce the crea
About this update from Canadian Chrome Company Inc.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - March 5, 2018) - KWG Resources Inc. (CSE: KWG.A) (CSE: KWG) (OTC: KWGBF) (FSE: KW61) (\"KWG\") is pleased to announce the creation of the Ring of Fire LP, a single purpose limited partnership flow-through fund dedicated to funding the costs of drilling and other exploration expenses which will be incurred to support the preparation of a planned comprehensive feasibility study and mining plan for the Black Horse Joint Venture. The Ring of Fire LP ('ROFLP') was created by Ring of Fire GP Inc., established by Patrick Lilly, its CEO, and John Rule, its Secretary-Treasurer, with a view to raising up to $50 million for this purpose. ROFLP has negotiated with KWG the terms of an agreement to provide investors in ROFLP with an option to exchange their LP units into Ferros, a cryptocurrency proposed to be created by KWG and backed by chrome from future production from the Black Horse Joint Venture chromite property. KWG proposes to create a blockchain-contract offering that will be backed by the Ring of Fire's chromite discoveries, a concept which KWG describes as a 'bank-in-the-ground'. The chromite reserved to back the Ferro will be secured by a registered charge on the mineral rights granted under the Mining Act (Ontario) for the Black Horse Project. An initial blockchain Ferro contract has been created on the Ethereum platform with one billion Ferros available for encryption into the finalized Ferro contract. KWG contemplates that the Ferros will become listed for trading on a recognized stock exchange and, when that happens or when the Ferros otherwise become negotiable, Limited Partners in the ROFLP will be granted the option, exercisable for a 60-day period following notice from the General Partner, to exchange their LP Units for Ferros, at the then Fair Market Value of Ferros, which notice shall not be issued before January 1, 2019. The Ferro contract cryptocurrency is being structured to appeal to those seeking a relatively more stable proxy for value exchange and liquidity, which has potential for larger circulation. It also represents a very long-term exposure to the chrome commodity, the principal alloy to render iron into stainless steel, as possible mine production which, if commenced, could extend well into the future, based on what is currently known about the Ring of Fire. It is prese...