KWG Resources Inc.
TSX VENTURE : KWG

KWG Resources Inc.

June 14, 2007 10:55 ET

KWG Resources Inc.: Proposed Private Placements of $350,000

MONTREAL, CANADA--(Marketwire - June 14, 2007) - KWG Resources Inc. (TSX VENTURE:KWG) announces a proposed financing of up to $350,000 in private placements of units at $0.05. Each unit is comprised of one common share of the Company and one common share purchase warrant entitling the holder to subscribe for one additional common share of the Company at a price of $0.10 at any time during a period of two years following the closing. It is expected that insiders will participate in the private placements. The proceeds will be used for working capital purposes.

Shares for services

In addition, the Company also announces that, pursuant to the Fiscal Agreement entered into with Paladin Capital Markets Inc. ("Paladin") (Press release dated May 3, 2007) it will issue 106,000 units at $0.05 per unit in payment of services rendered by Paladin to the Company in the month of May. Each unit is comprised of one common share of the Company and one common share purchase warrant entitling Paladin to subscribe for an additional common share of the Company at $0.10 at any time within until April 30, 2009.

The MacFadyen Program

The kimberlite samples recovered from the MacFadyen Kimberlites, as previously reported, have been split and logged. Half of each sample has now been processed, in the dense media separation plant at SGS Lakefield, and diamond recovery and sorting has begun. Results of this analysis will be reported as they become available over the next few days.

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