KWG Resources Insiders Participate in Private Placement
Toronto, Ontario – April 11, 2025 – KWG Resources Inc. (CSE: CACR) (CSE: CACR.A), doing business as The Canadian Chrome Company (CCC or KWG), is thrilled to share that three of its insiders have decided to invest in the upcoming closings of the Company’s private placement (the “Private Placement”).
The Private Placement, which was initially announced on March 20, 2025, aims to raise up to $5,000,000 by issuing a maximum of 4,032,258 units (each a “Unit”) at a price of $1.24 per Unit. The first tranche of this offering was successfully completed on April 7, 2025, with an aggregate of 116,129 Units sold for a total of $144,000.
Insiders’ Commitment
The three insiders, who have chosen to participate in the Private Placement, are:
- Daniel McCarthy, President and CEO
- John Paterson, Executive Chairman
- Frank Macchiarola, Director
Each insider will invest in an equal number of Units, with McCarthy and Paterson purchasing 333,076 Units each, and Macchiarola acquiring 333,106 Units.
Impact on the Company
This significant investment from KWG’s insiders not only demonstrates their confidence in the Company but also strengthens its financial position. The proceeds from the Private Placement will be used to advance the Company’s chromite projects, including the Black Horse Deposit and the Big Daddy Deposit, located in the James Bay Lowlands in Ontario.
Impact on Shareholders
For existing shareholders, this news could be viewed as a positive sign, as insider participation in a financing round often indicates confidence in the Company’s future prospects. However, the dilutive effect of the new shares issued through the Private Placement may result in a decrease in the value of existing shares, as more shares are added to the market.
Impact on the World
On a larger scale, KWG’s chromite projects have the potential to contribute significantly to the global chromite market. Chromite is an essential ingredient in stainless steel production, and the increasing demand for stainless steel in various industries, such as construction, automotive, and energy, is driving the need for more chromite resources. By advancing these projects, KWG could help bridge the supply gap and contribute to a more sustainable and secure global chromite supply chain.
Conclusion
With the successful completion of the first tranche of the Private Placement and the commitment from its insiders, KWG Resources Inc. is well-positioned to advance its chromite projects and potentially make a significant impact on the global chromite market. Shareholders and interested investors should continue to monitor the Company’s progress as it works towards unlocking the value of its chromite deposits in Ontario.
As always, it’s important to remember that investing in securities carries risks, and potential investors should consult their financial advisors before making any investment decisions.
