KWG Amends Option for Equity Conversion by CCC
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Toronto, Ontario--(Newsfile Corp. - January 19, 2024) - KWG Resources Inc. (CSE: CACR) (CSE: CACR.A), which carries on business as The Canadian Chrome Company ("KWG" or the "Company") (The Canadian Chrome Company is a registered business style of KWG Resources Inc.), reports that it has amended its agreement of January 18, 2021 with Tony Marquis ("Tony") relating to KWG's wholly-owned subsidiary, Canada Chrome Corporation ("CCC"), and the potential conversion of CCC's equity into multiple voting shares of KWG, as follows:
Tony will continue as the sole director of CCC at the pleasure of KWG;
Tony's right to tender unpaid Compensation to CCC in exchange for up to 244,400 CCC Shares will be extended to the following expiry dates (each an "Expiry Date"): (i) in respect of
$800,000 of Compensation earned by Tony in 2021, the Expiry Date will be the earliest of (A) December 31, 2024, (B) a change of control of CCC or (C) a change of control of KWG; and (ii) in respect of$880,000 of Compensation earned by Tony in 2022 and January 2023, the Expiry Date will be the earliest of (A) December 31, 2025, (B) a change of control of CCC or (C) a change of control of KWG; andin the event that Tony tenders unpaid Compensation to CCC and receives CCC Shares in exchange therefor: (i) Tony shall have the right, exercisable on or before the applicable Expiry Date for acquiring such CCC Shares, to tender such CCC Shares to KWG and receive 6.874 Multiple Voting Shares at a deemed price of
$1.99 per Multiple Voting Share in exchange for each CCC Share tendered by Tony; and (ii) KWG will have the right to tender 6.874 Multiple Voting Shares to Tony at a deemed price of$1.99 per Multiple Voting Share in exchange for each CCC Share held by Tony. A total of 1,680,000 Multiple Voting Shares are issuable pursuant to the foregoing tender rights.
"We're very pleased that Tony will continue in his advisory role for KWG now that development alternatives for the Ring of Fire are being considered," said CEO Frank Smeenk. "To have a premier "railroad man" in our group is crucial, when the long-term economics of moving a bulk commodity from Canada's north to markets at a great distance south, is being assessed. We know he will continue to make a significant contribution to that process for this frontier project, from his wealth of experience in his frontier development industry."
About The Canadian Chrome Company:
KWG, which carries on business as The Canadian Chrome Company, is an exploration stage company that is focused on identification, acquisition, consolidation, exploration, development and evaluation of large-scale deposits of minerals including chromite, base metals and strategic minerals and, where applicable, in the development of transportation links to access remote areas where these deposits may be located. KWG is the owner of
For further information, please contact:
Bruce Hodgman, Vice-President: 416-642-3575 ~ info@canadachrome.com
Forward-Looking Statements: Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and KWG disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
Disclaimer: 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/195032
FAQ
What is the amendment reported by KWG Resources Inc.?
Who will continue as the sole director of Canada Chrome Corporation?
What are the terms for acquiring multiple voting shares as outlined in the amendment?