Frank Smeenk, KWG Resources‘ President & Chief Executive Officer, got active in his company’s open market last week.
According to insidertracking.com, Smeenk purchased 1.6 million shares at $0.02 per share on March 23rd and 153,000 shares at $0.025 per share on March 24th.
The purchases came days after KWG made an announcement regarding a meeting with Noront and one day after Noront Resources announced it would be acquiring additional mining claims in the Ring of Fire mining district.
I wrote about the Noront development on March 23rd in an article titled Noront Resources consolidates Ring of Fire.
“Franco Nevada, (FNV:TSX) an approximate $10 billion market cap company and a leading royalty and streaming company, put up the cash to finance the acquisition.”
Click here to learn more about the streaming and royalty deal that sent Noront to within 3 cents of its 52-week high on millions of shares traded.
KWG Resources’ future after Noront deal with Cliffs’ subsidiary
Many retail investors have been wondering how the deal Noront struck last week could impact the junior explorer.
KWG Resources 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 also has 100% ownership of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program, originally for the engineering and construction of a railroad to the Ring of Fire from Aroland, Ontario.
KWG Resources has doubled from a recent low of $0.015 to where it was trading at $0.03 on Monday afternoon.
Its market cap stood at roughly $24 million Monday afternoon.
On the afternoon of March 23rd, just hours following Noront’s initial press release, KWG Resources announced that it had been invited to talks with Noront Resources after being informed of the proposed purchase by Noront of the Ring of Fire assets of Cliffs Quebec Iron Mining ULC.
Below is an excerpt and series of comments by Frank Smeenk.
“This is positive news for us,” said KWG CEO Frank Smeenk. “Noront CEO Al Coutts has invited us to discuss our future plans to develop our properties in partnership with the First Nations. We are delighted with this evolution of the Ring of Fire’s opportunities and are hopeful that our relationship with our Big Daddy joint venture partner will become more constructive and collaborative. We think that the transportation and processing options we have developed can now be pursued in concert with our two governments and the First Nations constituencies to see the mineral assets of both Noront and KWG go into production.”
Click here to learn more.
Insider buying in junior resource stocks
Insider buying in a key component to monitor in any junior resource stock. We highlight 50 of the top buyouts in Canada’s small cap market in our recently released EBook.
Click the below image and link to learn more the industry’s top executives who took juniors to stunning multi-million dollar buyouts.
While KWG Resources is still very much an exploration stage company, recent developments in the Ring of Fire, led by Noront Resources has increased interest in the junior. The insider buying by its President and CEO is noteworthy as KWG attempts to add value and advance its assets.
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