KWG May Team Up with China on Ring of Fire Transportation

Industrial Metals

KWG Resources Inc. (CSE:KWG) announced that it’s signed a confidentiality and non-disclosure agreement with China Railway First Survey Design Institute Group Co. Ltd. (FSDI).

KWG Resources Inc. (CSE:KWG) announced that it’s signed a confidentiality and non-disclosure agreement with China Railway First Survey Design Institute Group Co. Ltd. (FSDI).
The agreement was arranged by Golden Share Mining Corp. (TSXV:GSH), and will allow KWG and FSDI to “explore the possibility” of a negotiated transaction under which FSDI would undertake a feasibility study “on all aspects of the construction of a Ring of Fire transportation corridor and railroad.”
As quoted in the press release:

FSDI has begun its review of the [Canada Chrome Corp. (CCC)] data and advises that it will deliver a proposal to the parties as soon as possible in preparation for discussions in early 2016.
To advance the ongoing anticipated negotiations, CCC has engaged GSH as its representative and advocate in China. GSH is indirectly controlled by the Beijing Institute of Geology for Mineral Resources, a Chinese State Owned Enterprise. As a completion incentive, CCC will grant to GSH a finder’s fee for capital expenditures made by FSDI and its affiliates and associates for any transportation assets with which the CCC lands are improved, of 1% of all construction expenditures, payable on substantial completion of construction and thereafter a royalty on revenues generated by such transportation assets of 1.5% of freight revenues, payable quarterly.
To secure access to its mineral interests in the Ring of Fire, in 2010 CCC staked mineral claims along a 340 kilometre long route covering a series of sand ridges. These claims traverse the traditional territories of the Aroland and Marten Falls First Nations who accordingly have a keen interest in development of any transportation corridor along that alignment. The interests of these two First Nations and their Matawa Tribal Council neighbours must be accommodated for any construction to proceed and are expected to be negotiated as part of the feasibility study process.

Click here to read the full KWG Resources Inc. (CSE:KWG) press release.