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Wednesday, October 5, 2011

KWG to buy back shares... smart move


News Release
Symbol on TSX-Venture :

KWG.V


Shares issued and outstanding:

636,878,941
      
KWG ANNOUNCES NORMAL COURSE ISSUER BID
Montreal, Canada – October 5, 2011 – The KWG Resources Inc. (TSXV: KWG) Board of Directors has authorized the purchase of up to 31.9 million of its common shares by way of normal course purchases on TSX Venture Exchange (“TSXV”), subject to regulatory approval.  KWG intends to file the required notice with the TSXV to obtain such approval as soon as practicable.  The common shares authorized to be purchased, represent 5% of the common shares presently outstanding.
KWG believes that its common shares currently trade in a price range that does not adequately reflect their underlying value based on KWG’s business prospects and strong financial position.  As a result, depending upon future price movements and other factors, KWG believes that its outstanding common shares represent an attractive investment and a desirable use of a portion of its corporate funds.
The purchases may commence two trading days after acceptance by TSXV of KWG’s notice of intention and will be undertaken by Jones Gable and Company Limited as KWG’s agent.  It is expected that the purchases will not presently exceed $500,000 and will terminate not more than one year after the purchases commence, or on such earlier date as KWG may complete its purchases.
Purchases will be made by KWG in accordance with applicable regulatory requirements and the price which KWG will pay for any such common shares will be the market price of such shares at the time of acquisition.  The common shares purchased will be cancelled.
To the knowledge of KWG, no director, senior officer or other insider of KWG currently intends to sell any common shares under this bid.  However, sales by such persons through the facilities of the TSXV may occur if the personal circumstances of any such person change or if any such person makes a decision unrelated to these normal course purchases.  The benefits to any such person whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased.
For further information, please contact:
BRUCE HODGMAN
Communications Director
416-642-3575
info@kwgresources.com
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