KWG negotiates private placements

Recent private placements with independent investors raised $500,000 for KWG Resources (ME), the company says.

In total, 400,000 treasury shares were issued at $1.25 per share. The company said the funds will be used for general working capital purposes. KWG said a wholly owned subsidiary, Cadillac Mining Resources, is performing a drilling program on the Central Cadillac property (which hosts a former gold mine) in Cadillac Twp., Que. A 1991 private placement worth $900,000 is funding the work.

Cadillac will drill 34 holes. Among the assays already received are 6.8 ft. of 0.29 oz. gold per ton from hole CC-9205 and 5.4 ft. of 0.54 oz. from CC-9208.

KWG also said it and SEG Exploration (ME) recently completed the first phase of an ongoing drilling program at the Granada gold property southwest of Rouyn-Noranda, Que. Forty holes tested the No. 1 vein system and 29 shallow holes tested the No. 2 vein zone to an average depth of 100 ft. The companies said the second phase of the program will consist of more than 80 holes.