Attention Business/Financial Editors:
KWG Resources Inc. - Filing of prospectuses and Quebec Superior Court rejects financial technology claim
MONTREAL, Oct. 20, /CNW/ - KWG Resources Inc. ('KWG') is pleased to
announce that it has filed prospectuses in several Canadian provinces and the
Quebec Superior Court dismissed the claim submitted by Financial Technology
Research Corporation (''Financial'').
PROSPECTUS/RIGHTS ISSUE
In accordance with its Plan of Arrangement filed under the Companies'
Creditors Arrangement Act and in keeping with orders of the Quebec Securities
Commission (''QSC''), KWG submitted a draft prospectus to the QSC and a
preliminary prospectus to other provincial securities regulatory bodies for
the purpose of qualifying several issues, including the issuance of shares to
creditors in settlement of debt and the issuance of shares related to the
rights offering. These offerings are subject to regulatory approval.
In the event that a receipt for the final prospectus is issued, KWG will
launch a rights issue with a view to raising adequate funds to further develop
its projects and as working capital.
QUEBEC SUPERIOR COURT REJECTS $4,375,000 CLAIM BY FINANCIAL
On April 24, 1998, Financial filed a proof of claim in the amount of
$4,375,000. On June 16, 1998, KWG and Richter & Associates, Trustees,
disallowed Financial's claim because it was unfounded and frivolous.
On June 19, 1998, Financial took an action to appeal the disallowance of
proof of claim by KWG and Richter & Associates. On October 9, 1998, KWG filed
a motion to dismiss Financial's action. This motion was granted by the Quebec
Superior Court in favour of KWG on the same day.
KWG is a mining exploration company currently trading (without quotation)
on the Canadian Dealing Network Inc. (CDN) under the symbol KWGR. KWG has
76,057,076 issued and outstanding common shares (including shares to be
distributed to creditors).
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
PRESS RELEASE.
-0- 10/20/1998
For further information: Mary Peschka, (416) 941-8709
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