Ring of Fire News


What's up with the biggest thing happening in mining in NW Ontario?

#RingOfFire (#RoF) News – July 27, 2016

  • Mo’ movement on the big rail study “KWG Resources has signed on CANARAIL Consultants to conduct a rail feasibility study for the Ring of Fire and for its development partners, China Railway First Survey & Design Institute.  Quebec-based CANARAIL provides consulting and engineering services for mining and freight railways, and has worked on projects on every major continent.  According to KWG, it worked on a feasibility study for a mining railway in northern Quebec under Plan Nord, and has refurbished rail cars in the Rocky Mountaineer fleet …” – more in a company news release here
  • Meanwhile, some governance adventures for KWG … “The shareholders of KWG Resources Inc. have held their Annual and Special General Meeting voting resoundingly in favour of the re-election of the Company’s incumbent Board of Directors but then, very ambiguously, not supporting that same management’s principle initiative …”
  • … with a rescheduled meeting … “KWG announces that the Annual and Special General Meeting of its shareholders which was adjourned last Thursday, July 21st, 2016, will reconvene at the same venue: Norton Rose Fulbright Canada LLP, Suite 3800, Royal Bank Plaza, South Tower, 200 Bay Street, Toronto, Ontario, M5J 2Z4 at 11:00 o’clock Thursday morning, August 18th, 2016 …”
  • … and a rebuttal to something shared elsewhere online (from the same release linked above): “…Claims published by the blogger ‘Goodheart-r’ (Ed: surely not this???) to the effect that KWG is in possession of material information that has not been timely disclosed, have no basis in fact.  To facilitate a comprehensive reconnaissance due diligence visit by eight professional railroad engineers employed by China Railway First Survey & Design Institute Group Company, Ltd. in late April, KWG engaged the services of five individual professional translators who each were retained to accompany the group separately in various parts of the trip. One of these was able to provide translation services for us for meetings in Toronto, North Bay and Montreal because her spouse was available to drive her to these locations so as to be able to connect with the group upon their arrival. While she has maintained the confidentiality of these engagements, he has not and it appears his motives were in fact to try to obtain inside information with which to enhance his stature and currency in his social media circles. However, the suggestions he has published about what KWG and FSDI have agreed to are untrue and a source of regret and embarrassment for KWG and its management …” – you can read Goodheart-r’s response to KWG’s statement here
  • More from this “Goodheart-r” on Chinese involvement in the #RingOfFire  – (based on the above, of course, caveat lector) … “The Chinese want the chromite, they also want the kwg reduction patent ( they have already tweaked it to even greater savings). They want this so much they are willing to pay for and build a railroad of 2 billion dollars and take a very generous payback time of around 75 years. The Chinese ambassador to Canada told the fsdi representatives to be very careful until one: The indian native problem is solved and two: an off-take agreement is secured. These have to happen before the Chinese guarantee the funding for the rail. The Chinese said they would be ready to announce funding by end of November. This means the Native Canadians, the two Canadian governments and any mining companies MUST come to an accord before the end of November, or after, only as long as the Chinese are willing to wait. Cliffs tried it their way and waited only so long as all parties found out. The Chinese patience is finite also …” – more here
  • Speaking of the Chinese, remember Noront’s partnership with China’s Baosteel from 2011 (last bullet)?  One wonders how long Baosteel’ll have the resources to keep playing in the #RingOfFire as it faces a possible shotgun wedding with a big money loser. “It may be the Chinese government’s idea of creative destruction. Beijing appears to be on the brink of forcing the most modern and competitive Chinese steelmaker, which is itself struggling amid a global steel glut, to rescue a loss making and heavily indebted rival in what some securities and credit analysts see as potentially a marriage made in hell.  Listed units of Baosteel Group, the second-largest Chinese steelmaker, and Wuhan Iron and Steel Group, the sixth largest, said in separate stock exchange announcements on June 26 that they are planning on restructuring together …”
  • In other Noront news, management seems to be trading shares for salary“Noront Resources Ltd. announces the Company’s Board of Directors has granted the option to acquire an aggregate of 416,253 common shares to senior management as compensation for voluntary pay reductions. The options are exercisable into common shares at an exercise price of $0.31 per common share, the closing market price on the date of grant (July 5, 2016) for a period of five years …”
  • … as it continues to pay off loans  “Noront Resources Ltd. announces that payment of interest in the amount of $388,050 for the second quarter of 2016 pursuant to a loan agreement entered into between Noront and Resource Capital Funds V L.P. dated February 26, 2013 has been satisfied by delivery of 1,307,308 common shares of the Company at an effective price of $0.2968 per Interest Share …”
  • A northern Ontario Conservative MPP continues to press for Ontario Northland #RoF involvement (and lower hydro prices)  “Nipissing MPP, Vic Fedeli sees the Ontario Northland Railway as having a huge role to play in the Ring of Fire, the massive planned chromite mining and smelting development project in the mineral-rich James Bay Lowlands. He says he hasn’t given up on the Ring of Fire and still believes it is an untaped wealth and the key to Ontario’s future success …”



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