TORONTO, ONTARIO–(Marketwired – June 29, 2015) – KWG Resources Inc. (CSE:KWG)(FRANKFURT:KWG6) (“KWG”) has now acquired one hundred percent of the ownership rights in two United States provisional patent applications relating to the production of chromium iron alloys directly from chromite ore, and the production of low carbon chromium iron alloys directly from chromite concentrates (the “Chromium IP”) announced on April 21, 2014.
The vendor assigned its remaining fifty-percent interest in the Chromium IP in exchange for 25 million units of KWG (each, a “Unit”), with each Unit comprising one common share of KWG and one common share purchase warrant of KWG exercisable at a price of $0.10 for 5 years from closing. The Chromium IP includes the right to use these provisional patent applications as the basis for filing additional patent applications in the United States, Canada and elsewhere worldwide.
“With the support recently demonstrated by Minister Rickford and the scientists of Natural Resources Canada it became clear that owning all of this intellectual property now would put us into a better situation for further investment into testing and commercialization,” said KWG President Frank Smeenk. “It was very encouraging to learn that our national government was so well-informed on the economic potential of the Ring of Fire chromite resources and the reduction technology that we are developing, in workshops held in Ottawa last week.”
KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program, originally for the engineering and construction of a railroad to the Ring of Fire from Aroland, Ontario.
KWG subsequently acquired patent interests, including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. The company has determined that the reduction method can be employed to metalize finely ground chromite which may be recovered from slurry delivered to Aroland in an underground pipeline constructed within the Canada Chrome claims.
For the Cautionary Note Regarding Forward‐Looking Statements and original version of this news release, click here: http://www.marketwired.com/press-release/kwg-acquires-100-of-chromium-intellectual-property-cnsx-kwg-2034052.htm
KWG Resources Inc.