Business
KWG Debentureholder Agrees to Extend Due Date in Exchange for Ferrochrome Warrants
Toronto, Ontario--(Newsfile Corp. - December 20, 2019) - The holder of a Convertible Debentures issued by KWG Resources Inc. (CSE: KWG) (CSE: KWG.A) (FSE: KW6)
About this update from Canadian Chrome Company Inc.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - December 20, 2019) - The holder of a Convertible Debentures issued by KWG Resources Inc. (CSE: KWG) (CSE: KWG.A) (FSE: KW6) (\"KWG\" or the \"Company\") for proceeds of $500,000 has agreed to extend its maturity until March 26, 2021. As consideration for the extension, KWG will distribute ferrochrome delivery warrants (\"Delivery Warrants\") to the debenture holder and amend the redemption amount due and bearing interest as of December 19, 2019 to $525,000. For each $35.00 principal amount of Convertible Debentures, the Debenture-holder will receive Delivery Warrants exchangeable on a first-come aliquot basis for one ton of warehoused ferrochrome. The terms of the Delivery Warrants will provide that they may be tendered by their holders to receive ferrochrome from 1% of any future ferrochrome production from the Company's chromite mineral interests, if and when produced. The Company intends to set a ferrochrome delivery standard for ferrochrome after processing to be approximately 52% chrome content with carbon of 6% - 8%, silica not exceeding 1.5% and the remaining fraction being principally iron. The Company proposes to list the Delivery Warrants for trading on the Canadian Securities Exchange (the \"CSE\") which, if implemented, could provide a liquid market for ferrochrome price hedging. The Company is planning to proceed with a Rights Offering to meet a CSE listing condition of demonstrating a sufficiently wide distribution of the Delivery Warrants. The Company is planning to announce terms of the Rights Offering in early 2020. In connection with the creation of the Delivery Warrants, the Company will undertake to provide a security interest in its chromite mineral title to back the obligation for future delivery and will also undertake that, should production of ferrochrome ensue in future from minerals recovered from those mineral claims, 1% of all such production will be warehoused on an ongoing basis to provide stocks of ferrochrome for delivery to warrant-holders wishing to take delivery of ferrochrome in exchange for tender and cancellation of their corresponding Delivery Warrants. KWG is a mineral exploration company with mineral exploration claims in the Ring of Fire area of northwestern Ontario. The Company does not currently have any reserves (within the meaning of Nation...