NEWS ROUNDUP — Gencap purchases more KWG shares

A holding company controlled by Pierre Gauthier of Montreal has increased its ownership position in KWG Resources (ME) through a private transaction.

TThe holding company, Gencap, bought 337,500 shares of KWG at $3 per share. The purchase boosts the combined interest of Gencap and Gauthier to more than 1.7 million shares, or 19.9%, of KWG.

KWG also says the first phase of a public financing with Societe en commandite miniere KWG-G 1992 raised $605,000. KWG is hoping to raise up to $1.04 million with the financing.

The company will apply the funds to the custom-milling processing of a surface bulk sample from the Granada gold project southwest of Rouyn-Noranda, Que., in which KWG has a 50% interest.