The Canadian Chrome Company Inc. Delivers Notice of Extension of Maturity Date for Its Secured Convertible Promissory Note and Grants Stock Options

Rhea-AI Summary

The Canadian Chrome Company (KWGBF) notified Fancamp of an extension of the $34,500,000 Secured Convertible Promissory Note maturity from September 1, 2026 to August 31, 2027.

The company also granted 2,677,600 stock options on February 27, 2026 at an exercise price of $1.60, vesting immediately and expiring in five years. Management engaged Origin Merchant Partners to evaluate strategic alternatives, including potential sale or asset transactions.

Positive

• Maturity extended to August 31, 2027, reducing immediate repayment pressure
• Strategic review with Origin Merchant Partners could enable value-maximizing transaction

Negative

• $34.5M secured convertible note remains outstanding and may convert or pressure capitalization
• 2,677,600 stock options at $1.60 may dilute existing shareholders if exercised

News Market Reaction – KWGBF

+75.00%

1 alert

+75.00% News Effect

On the day this news was published, KWGBF gained 75.00%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Toronto, Ontario--(Newsfile Corp. - March 2, 2026) - The Canadian Chrome Company Inc., (CSE: CACR) (CSE: CACR.A) formerly known as KWG Resources Inc.  ("CCC" or the "Company"), is pleased to announce that it has given notice to Fancamp Exploration Ltd. ("Fancamp") to extend the maturity date of the Secured Convertible Promissory Note from September 1, 2026, to August 31, 2027. The $34,500,000 Secured Convertible Promissory Note was issued by the Company to Fancamp on September 1, 2022, in connection with the Company's acquisition of Fancamp's interest in the "Koper Lake-McFaulds" mineral properties located in the "Ring of Fire" in the Province of Ontario.

"As recently announced, the Company has retained the services of Origin Merchant Partners as the Company's financial advisor to assist with consideration of the Company's strategic position and assessment of the Company's strategic options and alternatives, including investigating the possibilities of a sale or divestiture of the Company, whether by merger, consolidation, reorganization or business combination, or by take-over bid, negotiated purchase or other means or possible joint venture or sale of substantially all of the assets of the Company," said Frank Smeenk, Chief Executive Officer of the Company. "We believe that these efforts may result in a transaction in the coming months, possibly before the original maturity date of the Secured Convertible Promissory Note, making the extension of the maturity date of the Secured Convertible Promissory Note unnecessary. However, in case that does not occur before the current maturity date, we believe that it is prudent to extend the maturity date to address that possibility."

The Company also announces the grant on February 27, 2026, to directors, officers and certain consultants of the Company of an aggregate of 2,677,600 stock options pursuant to the provisions of the Company's stock option plan. Each stock option entitles the holder to purchase one multiple voting share of the Company at an exercise price of $1.60 per share, vesting immediately and expiring within 5 years from the date of grant.

About The Canadian Chrome Company Inc.
The Canadian Chrome Company Inc. is an exploration stage company that is focused on identification, acquisition, consolidation, exploration, development and evaluation of large-scale deposits of minerals including chromite in the Ring of Fire, as well as other base metals and strategic minerals and, where applicable, support for the development of transportation and electrification links to access remote areas where these deposits may be located.

For further information, please contact:
Bruce Hodgman, Vice-President: 416-642-3575 ~ info@canadachrome.com

Forward-Looking Statements: Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Disclaimer: Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/285865

FAQ

Why did The Canadian Chrome Company (KWGBF) extend the $34.5M note maturity to August 31, 2027?

To reduce near-term repayment risk and provide time for strategic options. According to the company, the extension covers the possibility that a transaction does not close before the original September 1, 2026 maturity.

What are the terms of the 2,677,600 stock options granted by KWGBF on February 27, 2026?

Each option allows purchase of one multiple voting share at $1.60, vests immediately, and expires five years from grant. According to the company, options were granted to directors, officers and certain consultants.

How could Origin Merchant Partners’ engagement affect KWGBF shareholders and the note maturity?

A successful strategic process could produce a sale or transaction before the original maturity, potentially negating the need for extension. According to the company, advisors will evaluate sale, merger, joint venture, or asset dispositions.

Does the note extension change the principal amount or conversion features of KWGBF’s secured convertible note?

No change to the stated principal is reported; only the maturity date was extended to August 31, 2027. According to the company, the $34,500,000 note issued September 1, 2022 remains otherwise as originally agreed.

What shareholder impact should investors expect from KWGBF’s option grant and note extension?

Expect potential dilution if options are exercised and continued leverage from the outstanding convertible note. According to the company, the measures were taken to provide flexibility while strategic alternatives are pursued.