Fancamp and KWG Resources Announce Closing of the Sale of Fancamp’s Interests in Koper Lake-McFaulds Mining Claims to KWG
September 01 2022 - 5:30PM
Fancamp Exploration Ltd. (“
Fancamp”) (TSXV: FNC)
and KWG Resources Inc. (“
KWG”) (CSE: KWG, KWG.A;
FSE: KW61) are pleased to announce that, further to their joint
press releases dated July 21, 2022 and August 10, 2022, they have
closed the sale (the “
Transaction”) by Fancamp to
KWG of all of the right, title and interests beneficially owned by
Fancamp in and to the “Koper Lake-McFaulds” mineral properties,
comprised of four (4) “legacy” mining claims (the “
Mining
Claims”) that cover approximately four (4) square
kilometers, overlying the axis of the Ring of Fire intrusion, host
to all the known chromite deposits located within the “Ring of
Fire” in the Province of Ontario.
The consideration paid by KWG to Fancamp for the
purchase of the Mining Claims and the one-time payment by Fancamp
to KWG of C$1,500,000 consisted of: (a) the issuance by KWG to
Fancamp of a secured convertible promissory note in the principal
amount of C$34.5 million; (b) the issuance by KWG to Fancamp of
warrants to purchase a total of 4,044,453 multiple voting shares of
KWG; and (c) the grant by KWG to Fancamp of a 2.0% net smelter
return royalty (one-quarter of which may be purchased by KWG at any
time for C$5 million and the next one-quarter of which is subject
to a right of first refusal in favour of KWG) on any direct or
indirect interest in the Mining Claims held by KWG on and after the
closing date.
Additional information with respect to the
Transaction can be found in the joint press release of Fancamp and
KWG dated July 21, 2022. Additional information with respect to the
Mining Claims can be found under KWG’s SEDAR profile at
www.sedar.com.
For further information, please contact:
(a) on behalf of Fancamp: |
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Rajesh SharmaPresident and Chief Executive Officer+1 (604) 434
8829info@fancamp.ca |
Debra ChapmanChief Financial
Officer+1 (604) 434 8829info@fancamp.ca |
Tara AsfourDirector of Investor
Relations+1 (604) 434-8829tasfour@fancamp.ca |
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(b) on behalf
of KWG: |
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Bruce HodgmanVice-President416-642-3575info@kwgresources.com |
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Neither the TSXV nor its Regulation Services
Provider (as that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this news
release.
Neither the Canadian Securities Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the CSE) accepts responsibility for the adequacy or
accuracy of this news release.
About Fancamp Exploration Ltd.
Fancamp is a growing Canadian mineral
exploration corporation dedicated to its value-added strategy of
advancing its priority mineral properties through exploration and
innovative development. Fancamp owns numerous mineral resource
properties in Quebec, Ontario and New Brunswick, including
chromium, strategic rare-earth metals, gold, zinc, titanium and
more. Fancamp’s chromium properties in the highly sought-after Ring
of Fire in Northern Ontario are strategically located. Its rare
earth element properties in Quebec are a special focus. Fancamp has
investments in an existing iron ore operation in the
Quebec-Labrador Trough, in addition to an investment in a zinc mine
planned to be restarted in Nova Scotia. Fancamp is developing
energy reduction technology with its advanced Titanium extraction
strategy. Fancamp is managed by a focused leadership team with
decades of mining, exploration and complementary technology
experience.
About KWG Resources Inc.
With the completion of the purchase from
Fancamp, KWG is the Owner of the Black Horse chromite project (part
of the “Koper Lake-McFaulds” properties). Bold Ventures Inc. is
carried through exploration of the former Fancamp claims for 10%.
KWG holds a 15% vested interest in the McFaulds copper/zinc project
and a vested 30% interest in the Big Daddy chromite project. KWG
also owns 100% of CCC which staked mining claims between Aroland,
Ontario (near Nakina) and the Ring of Fire. CCC has conducted a
surveying and soil testing program to assess the prospects for the
engineering and construction of a railroad along that route between
the Ring of Fire and Aroland, Ontario. CCC engaged Cormorant
Utilities and Rail-Veyor Technologies for Engineering Proposals for
the construction of a transportation and utility corridor within
the route and has received those proposals. KWG has also acquired
intellectual property interests, including a method for the direct
reduction of chromite to metalized iron and chrome using natural
gas. KWG subsidiary Muketi Metallurgical LP has acquired two
chromite-refining patents in Canada and one in each of the USA,
South Africa and Kazakhstan, and is prosecuting an application in
Turkey.
Forward-Looking Statements
This news release contains certain
“forward-looking statements” or “forward-looking information”
(collectively referred to herein as “forward-looking statements”)
within the meaning of applicable securities legislation. Such
forward-looking statements include, without limitation, forecasts,
estimates, expectations and objectives for future operations that
are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of Fancamp or KWG.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
“expects”, “plans”, “anticipates”, “believes”, “intends”,
“estimates”, “projects”, “potential” and similar expressions, or
are events or conditions that “will”, “would”, “may”, “could” or
“should” occur or be achieved. Examples of forward-looking
statements include, among others, future expectations with respect
to the advancement and development of the Mining Claims by KWG.
Although Fancamp and KWG believe that the
material factors, expectations and assumptions informing such
forward-looking statements are reasonable based on information
available to them on the date such statements were made, no
assurances can be given as to future results of such
statements.
Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual events to differ materially from those anticipated in such
forward-looking statements. These risks include, among others,
risks relating to general economic, market and business
conditions.
Readers are cautioned that the foregoing list of
factors is not exhaustive. Statements including forward-looking
statements are made as of the date they are given and, except as
required by applicable securities laws, Fancamp and KWG disclaim
any intention or obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
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