MONTREAL, CANADA -- 05/16/08 --
The break-up of winter ice conditions in the James Bay Lowlands has temporarily halted the drilling program of the joint venture between KWG Resources Inc (TSX VENTURE: KWG) and Spider Resources Inc (TSX VENTURE: SPQ) on the claims optioned from Freewest Canada Resources Inc (TSX VENTURE: FWR) near the discovery of the Eagle 1 and Eagle 2 nickel deposits of Noront Minerals Inc (TSX VENTURE: NOT). Field programs are expected to resume after the end of May.
In the meantime, KWG's Board of Directors has determined that the roll-over of the Company's diamond exploration property interests to its subsidiary Debuts Diamonds Inc, may be done in exchange for units issued from the subsidiary's treasury priced at $0.20 with each unit comprising one share and one warrant exercisable at $0.30 for one year. The rollover transaction, valued at approximately $9 million, was completed with effect on April 29th, 2008. It is anticipated that Debuts Diamonds will file its non-offering prospectus with regulatory authorities before mid-year.
Shares issued and outstanding: 263,659,821
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
Contacts:
KWG Resources Inc.
Bruce Hodgman
Communications Director
Direct: 905-582-9744
info@kwgresources.com
KWG Resources Inc.
Michel Cote
Director
514-866-6001 ext. 266
www.kwgresources.com
