TORONTO (miningweekly.com) – TSX-V-listed KWG Resources on Tuesday said it agreed to sell smelter royalties in three of its chrome deposits in Northern Ontario’s Ring of Fire to Anglo Pacific Group for $18-million.
KWG owns 28% of the Big Daddy chrome project, with US miner Cliffs Natural Resources owning the rest, and also held a 1% net smelter royalty on the Black Thor, Black Label and Big Daddy assets.
“The group anticipates that the royalties from these chromite deposits, the largest known deposits of chromite ore in North America, will provide long-term cash flows and continuing revenue growth for shareholders,” London-based Anglo Pacific chairpserson Peter Boycott said.
Cliffs aims to complete a prefeasibility study on the Black Thor project by September, with a full feasibility due for completion late next year.
First production has been pencilled in for 2015.
Cliffs acquired its interest in the chrome projects through its takeover of Spider Resources in July last year. It had also planned to buy out KWG, but later abandoned this.
The Ring of Fire, located in the McFauld's Lake area of the James Bay lowlands has attracted much attention over the past couple of years, with exploration drills turning for minerals including chrome and platinum-group metals.