A Chinese railway design firm will examine the engineering data related to KWG Resources’ proposed Ring of Fire transportation corridor, creating the potential for a future collaboration between the two parties.
KWG and China Railway First Survey & Design Institute Group Co., Ltd. (FSDI) have signed a confidentiality and non-disclosure agreement, which includes a three-year standstill provision, that will give China Railway access to KWG’s engineering data.
“The parties intend to explore the possibility of a negotiated transaction between them for FSDI to undertake a feasibility study for KWG on all aspects of the construction of a Ring of Fire transportation corridor and railroad, including terms for construction financing facilities,” reads a Nov. 24 statement from KWG.
The Chinese company will present its findings “as soon as possible,” according to the statement, “in preparation for discussions in early 2016.”
KWG has retained a third party, Golden Share Mining Corp. (GSH) as its representative and advocate in China. GSH will receive a finder’s fee if the collaboration goes forward.
KWG has a 30 per cent interest in the Big Daddy chromite deposit and the right to earn 80 per cent of the Black Horse chromite deposit in the Ring of Fire.
It has recently been in Ontario court over the title to mining claims it had planned to use as a right-of-way for a 340-kilometre-long railroad to transport chromite for processing.
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