Ring of Fire junior taps China for development cash

KWG Resources is jetting off to China in May to meet with its rail development partners and scrounge for project financing.

They’ll be meeting with China Railway First Survey & Design Institute Group to talk about the feasibility study the state-owned company prepared for KWG last year for a proposed $4-billion mine operation and ore haul railway from the James Bay exploration camp to Nakina in northwestern Ontario.

The Toronto-based chromite explorer said in a release that it’s looking to “establish interest” in supply agreements to feed the Chinese stainless industry, and make financing arrangements.

In an April 25 release, the company is requesting a “$1 billion guarantee” from the provincial Ring of Fire Infrastructure Development Corporation that they can use as “consideration for project financing terms from Chinese lenders.”

KWG has a 30 per cent stake in the Big Daddy chromite deposit in a joint venture it shares with Noront Resources. The company is also holds a 50 per cent stake in the Black Horse chromite deposit in another agreement with Bold Ventures.

In other developments, the company said it’s working towards striking an “equal partnership” with Marten Falls First Nation, one of the area communities with traditional territory on the string of nickel and chromite deposits in the region.

Representatives from Marten Falls will be accompanying KWG officials on the China trip.

The company said it wants to extend partnership offers to the nearby communities of Aroland and Webequie along with Noront, Fancamp Exploration, Bold Ventures and Probe Metals.

https://www.northernontariobusiness.com/industry-news/mining/ring-of-fire-junior-taps-china-for-development-cash-598129