KWG Completes First Tranche of Flow-Through Placement

11:25AM ET 07/04/2013

KWG Resources Inc. (TSX VENTURE:KWG) has completed a first tranche of a private placement of flow-through units, for proceeds of $300,000. Each unit comprises one flow-through treasury share and one warrant which may be exercised to acquire a further flow-through share for $0.10 at any time within three years. The units may be acquired by qualified investors for a subscription of $0.05 each. The TSX Venture Exchange has conditionally approved the listing of shares resulting from placements for subscriptions totaling $2 million.

The terms of the placement were negotiated with a registrant for subscription by its institutional and individual clients who subsequently failed to close and following which individual accredited investors, including the Company's CEO, completed this first tranche of the private placement. The balance of the placement is being made available to other accredited investors.

Re-approval of rolling stock option plan: At the last shareholders' meeting, the shareholders of KWG re-approved the Option Plan reserving a maximum of 10% of the issued shares of the Company at the time of any stock option grant.