KWG News Release, 27 June 2014 (my emphasis):

KWG Declared Winner In 2011 Staking Race With Noront

Montreal, Canada - June 27, 2014 - In an Order dated June 24, 2014 the Provincial Mining Recorder for Ontario has confirmed that KWG Resources Inc. (TSXV: KWG) was the first to stake two 16-unit claim blocks after they came open on the morning of June 17, 2011. The two claim blocks are contiguous to the southern two claim blocks of the Fancamp Exploration Ltd. Koper Lake claims where KWG is assessing the economic potential of the Black Horse chromite deposit under an option agreement with Bold Ventures Inc. and Fancamp. The Mining Recorder’s Order provides that KWG will have until June 24, 2016 to perform and file the first unit of assessment work and that the Disputant Eric Mosley on behalf of Noront Resources Ltd. will have 30 days from the date of the Order to appeal. The Order followed a two-day hearing before the Mining Recorder on April 24 and 25, 2014.

About KWG: 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 has also acquired interests in provisional patents including a method for the direct reduction of chromite to metalized iron and chrome using natural gas. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.

For further information, please contact:
Bruce Hodgman, Vice-President
416-642-3575 • info@kwgresources.com

Remember, my previous mathematical formula:
The Money KWG is spending to acquire 50% of Koper Lake (aka “Black Horse”)
> (is greater than)
the entire Market Capitalization of Fancamp (including its 50% of Koper Lake).

Between Bold and KWG, basically, KWG bought out Bold. As a consequence, KWG is the party contractually obligated to pay for the $8 million exploration of Koper Lake due by next April and is the party responsible for paying Fancamp $1.5 million by April for the 50% Bold/KWG option. Because Bold first made the deal with Fancamp, (from the 50% Bold/KWG share) Bold will not pay the bills but will get 20% of the Chromium and 80% of the Nickel.

In return for paying all the expenses, (from the 50% Bold/KWG share) KWG will get 80% of the 50% share of the Chromium and 20% of the 50% share of the Nickel. So, in effect, KWG is spending $9.5 million to get 40% of the Koper Lake Chromium (80% of 50%) and 10% of the Nickel (20% of 50%). Of course, on its side of the equation, Fancamp gets 100% of the Chromium and Nickel from its 50% share.

The rough outlines of the deal are as follows:
Bold pays nothing
to get 10% of the Koper Lake Chromium (and 40% of the Nickel).
KWG pays $9.5 million
to get 40% of the Koper Lake Chromium (and 10% of the Nickel).
Fancamp pays nothing
to get 50% of the Koper Lake Chromium (and 50% of the Nickel).

I do not have a deep or a complete understanding of all the things KWG has going for it, which inspire investors to buy shares. Just reading the overview given in a variety of KWG presentations, above all else are spotlighted its two major projects, The Koper Lake Project (aka “Black Horse”) and The Big Daddy Project. The acreage comparing Koper Lake (1,024 hectares) and Big Daddy (1,241 hectares) does not put either project on a far different scale from the other.

When presenting the two projects, on its website and elsewhere, KWG generally gives Koper Lake first billing and generally gives Big Daddy second billing. No mention is made of any other project or any other property. In terms of sheer size (and in terms of the monetary value of the minerals), the properties and holdings of Fancamp that are not part of Koper Lake are more immense and more extensive than the one property of KWG that is not part Koper Lake (Big Daddy).

$8.44 million = Market Capitalization of Fancamp
$46.66 million = Market Capitalization of KWG

Does this mean KWG is overvalued? Not according to the way I do my arithmetic (regarding all the non-Koper Lake assets of Fancamp). That arithmetic (2% of the Magpie in-situ Spot Market Mineral Prices) adds up to numbers of dollars in the billions, not millions. When you scale up the value of the mineral holdings’ numbers of Fancamp to billions of dollars from millions of dollars, it makes the $46.66 Market Capitalization of KWG, in comparison, too low. It follows that it is entirely possible (if not likely) that KWG is grossly undervalued (not overvalued).