Business
KWG Announces Proposed Investment Acquisition
Toronto, Ontario--(Newsfile Corp. - June 24, 2025) - KWG Resources Inc. (CSE: CACR) (CSE: CACR.A), which carries on business as The Canadian Chrome Company ("CCC", "KWG" or the "Company"), announces that it proposes to acquire, in two stages to assure conformity with terms of a shareholders' agreement, up to 50% of the equity of Newcon International Ltd. ("Newcon"), which carries on business as Newcon Optik, in exchange for CCC Multiple-Voting Shares to be issued ...
About this update from Canadian Chrome Company Inc.
[{"type":"text","content":"Toronto, Ontario--(Newsfile Corp. - June 24, 2025) - KWG Resources Inc. (CSE: CACR) (CSE: CACR.A), which carries on business as The Canadian Chrome Company ("CCC", "KWG" or the "Company"), announces that it proposes to acquire, in two stages to assure conformity with terms of a shareholders' agreement, up to 50% of the equity of Newcon International Ltd. ("Newcon"), which carries on business as Newcon Optik, in exchange for CCC Multiple-Voting Shares to be issued from treasury at a 15% premium to CCC's current volume weighted average trading price. A letter of intent was signed today to acquire an initial 25% indirect interest assuming certain underlying options are exercised, and is proposed to be completed following execution of a definitive agreement, satisfying all conditions and receiving all necessary approvals. The estimated value of this first 25% tranche at present market prices, based on a formula agreed upon and to be supported by a fairness opinion to be obtained prior to closing, would be approximately CA$14 million.","length":1093,"tagName":"p"},{"type":"text","content":"The proposed transaction is not intended to constitute or result in a change of business for CCC as CCC intends to continue to focus on its business of mineral exploration involving the acquisition of interests in, and the exploration, evaluation and development of, large scale mineral deposits of chromite and other base metals and minerals including the large chromite deposits it controls in Ontario's Ring of Fire. It is the objective of the proposed transaction to provide a source of cash-flow to be derived from dividends to be paid by Newcon and, in the longer term should the opportunity present itself, a liquidation of the investment in Newcon. Newcon Optik is a night optical equipment manufacturer and a world leader in laser-based rangefinders which are sold to military and police organizations in many countries. With annual net income ranging between $2.9 million and $6.1 million over the last five years, and excellent growth prospects, including in 2025, it has shown itself to be a profitable business and is expected to provide a steady flow of dividend income to its shareholders. This income will assist CCC with its cash needs rather than relying totally on periodic private placements in t...