KWG options Brazilian properties

Montreal-listed KWG Resources intends to acquire two gold properties,

Catalago and Limao, in the Tapajos goldfield of Brazil. As well, the company has applied for an additional 500,000 acres in the region, raising its total land holdings there to 600,000 acres. Drill results from Limao returned assays that ran 0.715 oz. gold per ton over 84 ft., including a 40-ft. section that averaged 1.4 oz. A second hole, 250 ft. from the first, returned a value of 0.60 oz. over 20 ft. Upon completing a due diligence review, KWG will issue 75,000 shares and pay US$25,000 for the properties. As well, it must pay US$225,000 over three years and additional payments must be made if economic deposits are found on either of the properties. The vendor will retain a 10% net profits interest in any production from the properties.

In other news, KWG sold 1.5 million shares of Franc-Or Resources (CDN) for proceeds of $3 million. KWG will retain 2.5 million shares, representing a 25% interest in Franc-Or.

KWG has also raised $5.25 million by selling 3 million units of Franc-Or for $1.75. Each unit consists of a common share and a half common share purchase warrant. Each whole purchase warrant entitles the holder to buy another common share until April 28, 1995, for $2.50.

Meanwhile, in a Euro-equity offering, Franc-Or has raised $700,000 by selling 400,000 units at $1.75 each.