KWG Resources Inc.
TSX VENTURE : KWG

KWG Resources Inc.

March 30, 2007 16:17 ET

KWG Completes $500,000 Private Placement with the Mineralfields Group (Amended)

MONTREAL, CANADA--(CCNMatthews - March 30, 2007) - KWG Resources Inc. (TSX VENTURE:KWG) reports that it has completed a private placement of 10,000,000 units to a fund within the MineralFields Group, for gross proceeds of $500,000. Each unit consists of one flow-through common share and one common share purchase warrant. Each common share purchase warrant entitles the holder to purchase one common share until March 23, 2009 at $0.10 per share. Limited Market Dealer Inc. acted as agent. It was paid a due diligence fee of $25,000 and was issued 500,000 common shares as a finder's fee. It was also issued 1,000,000 broker warrants. Each broker warrant is exercisable into one unit having the same terms and conditions as the units issued in the private placement, at a price of $0.05 until March 23, 2009. All securities issued pursuant to this private placement have a hold period of four months ending July 24, 2007. Proceeds of the private placement will be used to fund the exploration program on the MacFadyen property.

About MineralFields and Pathway

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about the MineralFields Group is available at www.mineralfields.com

Other private placement

The Company also closed another private placement of 1,200,000 units with the same terms and conditions as the placement described here above. The Company paid $3,000 in cash as a finder's fee.

About the KWG program

As recently announced, KWG is now drilling the MacFadyen Kimberlites adjacent to the DeBeers Victor Diamond Mine, to recover adequate samples for indicator mineral confirmation tests as well as diamond population and grade analysis.For further information and recent news releases see www.kwgresources.com.

Shares issued and outstanding: 175,085,208

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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