KWG and Bold were required to incur exploration expenditures of $8-million to earn a 50-per-cent interest in the Koper Lake project. KWG has completed all but approximately $2.2-million of that obligation. That amount will now be reduced to approximately $1.9-million, and KWG has until Sept. 30, 2016, to complete the expenditures and acquire 80 per cent of Bold's interest in the chromite resources of the Black Horse chromite deposit. Should KWG not make the expenditures by Sept. 30, 2016, Bold has until March 31, 2017, to complete the total expenditures of $7.7-million to earn a 50-per-cent interest in the property from Fancamp. Bold is the operator of the Koper Lake project.

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FNC had an agreement with BOLD only, not with KWG. Then BOLD made a secondary agreement with KWG. FNC wouldn't care about the secondary agreement, as long as the exploration expenditure is fulfilled ($7.7 million). If KWG canot make $1.9 million expenditures, they would lose the right to claim 80% (of %50) of interest from BOLD and BOLD has to spend $7.7 million by March 31, 2017. IMO, both of KWG and BOLD would like to modify the agreement, issue shares again and reduce the amount of exploration expenditures and extend the deadline. It will be up to FNC to agree to further modification.

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The mining claims, known as the Koper Lake project, which contains the Black Horse chromite deposit, are held by Fancamp Exploration Ltd., subject to an option agreement in favour of Bold Ventures Inc. Bold, in turn, has given KWG Resources Inc. the right to earn up to an 80-per-cent operating interest under its option in the chromite resources and up to a 20-per-cent operating interest in all other metals, while Bold will earn, upon KWG fulfilling the terms of the option agreement, up to a 20-per-cent carried interest in the chromite resources and up to an 80-per-cent operating interest in all other metals within the claims.