KWG Resources Inc. said March 5 that it has created a single purpose limited partnership flow-through fund named Ring of Fire LP.
The C$50 million partnership will fund drilling and exploration expenses to prepare a comprehensive feasibility study and mining plan for the Black Horse chromite joint venture in Ontario.
The Ring of Fire LP was created by Ring of Fire GP Inc., established by its CEO Patrick Lilly. Investors in Ring of Fire will have a 60-day option to exchange their partnership units into a KWG-created cryptocurrency, Ferros, which will be backed by future chrome production from the Black Horse property.
The chromite reserved to back the Ferro will be secured by a registered charge on the mineral rights granted under the mining act of Ontario for the Black Horse project.
Additionally, KWG subsidiary Canada Chrome Corp. staked claims in northern Ontario and evaluated the claims as a proposed transportation route linking the TransCanada east-west transportation corridor at Nakina to the Ring of Fire area.
