KWG Resources Inc.

KWG Resources Inc.

May 03, 2007 08:00 ET

KWG Completes Second Tranche of Placement with Mineralfields Group; Retains Paladin Capital

MONTREAL, QUEBEC--(CCNMatthews - May 3, 2007) - KWG Resources Inc. (TSX VENTURE:KWG) reports that it has completed a private placement of 5,000,000 units to funds within the MineralFields Group, for gross proceeds of $250,000. 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 April 30, 2009 at $0.10 per share. Limited Market Dealer Inc. ("LMD"), of which First Canadian Securities is a division, acted as agent and was paid a due diligence fee of $12,500 and was issued 250,000 common shares as a finder's fee. LMD was also issued 500,000 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 April 30, 2009. All securities issued pursuant to this private placement have a hold period of four months ending August 31, 2007. Proceeds of the private placement will be used to fund the exploration program on the MacFadyen property.

About MineralFields, Pathway and First Canadian Securities ®

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 MineralFields Group is available at First Canadian Securities® is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.

Fiscal Agency Agreement

Additionally, the Company has retained the services of Paladin Capital Markets Inc., to provide, amongst other services, ongoing assessment of the available methods of financing the operations and undertakings of the Company; competitive reorganization and acquisition opportunities; and assistance to management on structure, financing, strategic alternatives, and the due diligence required of each option. The fiscal agreement is for six months with a monthly retainer of $5,000 payable in arrears in cash or, at the Company's option, such number of units as results from dividing $5,000 by the KWG closing price on the last day of the month (the "Share Price"). Each unit is comprised of one common share of the Company and one common share purchase warrant entitling the holder to acquire an additional common share of the Company at any time within two years from the date of the signature of the agreement at the greater of a price equal to 125% of the Share Price, or $0.10.

Shares issued and outstanding: 182,926,578

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.
    President and CEO
    514-866-6193 (FAX)
    KWG Resources Inc.
    514-866-6001-Ext. 266
    514-866-6193 (FAX)