KWG Resources (CSE:KWG) has discussed the terms for the possible creation of an equal partnership with the Webequie and Marten Falls First Nations to develop mineral deposits in Ontario’s Ring of Fire.
As quoted in the press release, KWG president Frank Smeenk said:
A little more than a year ago now, we welcomed the Webequie and Marten Falls First Nations joining forces to act together in concluding a ‘Negotiation Protocol Respecting Early Exploration in the Ring of Fire. The railroad feasibility study that China Railway FSDI proposes to undertake for us is based on the railroad being part of the large-volume underground chromite mining operations being envisaged to supply a gas reduction processing facility where the chromite would be upgraded to ferrochrome. Those mining and transportation capital assets will be largely located within the traditional territories of Webequie and Marten Falls.
As we seek offtake terms for this potential new ferrochrome supply, it is crucial that such terms include a floor price which insures these large-volume operations, once begun, can continue without interruption for the many decades possible. To guarantee this we have proposed to transfer our mining claims into a limited partnership provided that Webequie and Marten Falls make an investment into the limited partnership equal to KWG’s. We have offered to provide them with a non-recourse loan of $40 million to facilitate this.
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