KWG Resources to Issue Shares to Acquire Hornby Property

KWG Resources Inc. (CSE:KWG) announced plans to issue 4 million treasury shares priced at $0.025 each to MacDonald Mines Exploration Ltd. (TSXV:BMK). The shares will be exchanged for MacDonald’s five-claim Hornby property, located in Ontario’s Ring of Fire.
As quoted in the press release:

Under the terms of the agreement the vendor will retain a 2% NSR, half of which may be purchased by KWG for $1 million at any time prior to production from the property. KWG will also have the first right to buy the balance of the NSR at any time the holder proposes to sell it.
The Hornby Property claims constitute an extensive holding adjoining the southerly boundary of the Big Daddy Joint Venture property immediately to the north and would effectively double the surface area available for possible future mining operations at the Big Daddy deposit and the adjoining Black Thor deposit. The property is also adjacent to the Koper Lake property to the west that contains the Black Horse chromite deposit. The westernmost claim is underlain by the Ring of Fire Intrusion, the host rock of all the chromite deposits, and as such represents an important unexplored gap. The property carries banked assessment credits exceeding $390,000 which will provide almost 10 years of tenure.

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