RING OF FIRE Electrical Infrastructure Investment Study Finds Electrification of Marten Falls, Webequie, Eabematoong, Neskantaga, and Nibinamik First Nations Economically Feasible Through the Installation of a Tram Rail
Toronto, Ontario – (Newsfile Corp. – January 4, 2022) – KWG Resources Inc. (CSE: KWG) (CSE: KWG.A) (FSE: KW61) (“KWG” or the “Society”) and Canada Chrome Corporation (“CCC”) are pleased to announce the receipt of a report on investments in electrical infrastructure from OneLine Engineering, Engineering Branch of EPTCON Ltd., a utility company of Cormorant (the “Electrification plan“).
The report notes that previous project financings of such an infrastructure capital cost were based on 30-year debt amortization at an interest rate of 5% per annum in 2012, while the financing rate to a day of the Bank of Canada was 1% per annum. The current overnight rate of Â¼% per annum and the extent of resources in the Ring of fire should positively contribute to the economic feasibility of the Electrification Plan so that user tariffs can be maintained at very attractive levels over the economic life of the infrastructure assets and resources that can thus be developed in the Cercle de fire.
The electrification plan states: âWWe suggest that from government alone, the amount of aid for the capital cost of the proposed infrastructure is over $ 1.5 billion.The plan estimates the capital cost of the main corridor power infrastructure at $ 960.5 million and the cost of the Indigenous community’s power infrastructure at $ 788.1 million. from the Company’s proposed mine in the Ring of Fire along a 330 kilometer corridor to a proposed processing or transshipment site near Nakina, Ontario. Fort Hope, Neskantaga to Lansdowne House and Nibinamik to Summer Beaver, Ontario power grid and fiber optic networks and would phase out diesel production except in the event of an emergency outage.
The Company is also pleased to announce that it is continuing its discussions with newly incorporated companies. The Gitchizibii Company Inc., who expressed interest in managing the creation of a trust for members of the Matawa and Mushkegowuk First Nations. The Trust is designed to endow the beneficial interests in the infrastructure assets required for mining in the Ring of Fire. The company Gitchiziibii, KWG and CCC are currently considering filing an application for designation of the Rail-Veyor ore transport tram system as a mining work under the Ontario Mining Act for issuance. a bond issue to finance construction. it is anticipated that the electrification plan will be part of the application to the Ontario Land Court.
KWG is the operator of the Black Horse chromite project after acquiring a 50% stake through Bold Ventures Inc. which is 10% owned (20% of KWG’s capital in the joint venture) by KWG financing all exploration expenses. KWG also owns 100% of CCC which has staked mining claims between Aroland, Ontario (near Nakina) and the Ring of Fire. CCC conducted a land survey and analysis program to assess the prospects for engineering and building a railway along this route between the Ring of Fire and Aroland, Ontario. CCC retained the services of Cormorant Utilities and Rail-Veyor Technologies for engineering proposals for the construction of a transportation and utilities corridor on the route and received these proposals. KWG also acquired intellectual property interests, including a method of directly reducing chromite to metallized iron and chromium using natural gas. KWG’s subsidiary, Muketi Metallurgical LP, has acquired two chromite refining patents in Canada and one in the United States and South Africa and is pursuing an application in Turkey.
For more information, please contact:
Bruce Hodgman, Vice President: 416-642-3575 ~ [email protected]
Forward-looking statements: The information contained in this press release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained in this document 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, unless expressly required by applicable securities legislation. Although management believes that the expectations represented in these forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities that may be described herein and, therefore, should not be relied on unduly. Neither the Canadian Securities Exchange nor its regulatory services provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this press release.
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