All KWG Longs,

This preferred share proposal coupled with the recent Mining Minute clips provides not only a clearer picture but also outstanding news for the faithful and understandably tired KWG shareholder.

A Preferred Share is a class of ownership in a corporation that carries a higher claim on assets and earning, usually offers dividends that are paid out and do not carry voting rights.  A Preferred Share also represents an ownership interest (like an equity security) and is recognized on the equity side of a company’s balance sheet.

From the Mining Minute we know that there are some chromite related income producing assets in Turkey that are for sale and are being offered to KWG.  As I understand, there are also some chromite related revenue producing assets in the United States that KWG has also been made aware of.  Regardless, KWG’s plan would likely be to acquire these assets, apply their patented gas reduction process and boost capability of the assets all while reducing the cost of the output and lowering the associated production emissions.  Perhaps this will allow them to start supplying the Chinese potential partners in advance of the deal regarding the railway? KWG is off to Turkey next week and then from there off to China the following week.  Seems to me that something big is coming together quickly.

I don't think that KWG is looking for an exploration takeover (FNC, etc.).  They have more than enough chromite to supply the Chinese for the next 200 years.  KWG has moved on and is looking several steps ahead to the delivery of ferrochrome.  

Regardless, the Preferred Share is a clear signal that a deal is in the works and that some large entity is getting involved to finance the acquisition of these assets and in return will gain a revenue stream from this new class of shares. The selection of this financial vehicle is also curious as it sets some level of expectation that KWG will be generating revenue from these assets.  From an exploration company to revenue producing ferrochrome in a matter of weeks? In my mind, entirely possible and likely what we are looking at here.

My best to all KWG Longs,

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