KWG Resources Inc.
TSX VENTURE : KWG

KWG Resources Inc.

October 18, 2007 14:38 ET

KWG Creates Debuts Diamonds Subsidiary

MONTREAL, CANADA--(Marketwire - Oct. 18, 2007) - KWG Resources Inc. (TSX VENTURE:KWG) today incorporated Debuts Diamonds Inc as a wholly owned subsidiary to hold the company's interests in its diamond exploration undertakings and so separate them from its interests in the McFaulds Lake area, where Noront Resources Ltd. is drilling a significant nickel and copper discovery.

Debuts Diamonds will hold all KWG's diamond assets when their transfer can be completed. These include the MacFadyen Kimberlites and adjoining Pele and Uniform Surround claims, the Wawa JV, the Kyle JV and the Geraldton claims. Last winter's sampling results have dictated that 200-ton bulk samples should next be recovered from each of the Good Friday and MacFadyen 2 South pipes. Contracts are being negotiated for the completion of such a program early next year, at a total cost of some $1.5 million. KWG is exploring the merits of a distribution and listing of the shares of Debuts Diamonds Inc., as a tax-free dividend to its shareholders, in order to accept subscriptions of funding available for this next sampling program.

Planning is progressing by KWG, Spider Resources Inc. and Freewest Resources Canada Inc., for the drilling of targets identified near the Noront discovery. KWG and Spider may earn a 65% interest (32.5% each) in the Freewest Option claim blocks by funding their exploration and development. Drill targets have been identified there, at a distance of only 3200 metres north east of the Noront discovery. When planning and preparation have been completed, including a further airborne geophysical survey now underway, drilling of the targets will occupy the early part of 2008.

Shares issued and outstanding: 198,310,998

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Contact Information

  • KWG Resources Inc.
    Frank C. Smeenk
    President and CEO
    416-642-3575
    514-866-6193 (FAX)
    or
    KWG Resources Inc.
    Michel Cote
    Director
    514-866-6001 Ext. 266
    514-866-6193 (FAX)
    www.kwgresources.com