Hello Tony T.

You asked, “If KWG does buy out Cliffs for their ROF property, wonder what that will mean for their interest in Black Horse?”

So far as Fancamp is concerned, I cannot think of any negatives. The logic behind KWG building up its ROF portfolio is to improve the financial returns and the financial logic, by increasing the overall scale of CEO Frank Smeenk’s grand design. Economy-of-scale would be lost by picking-and-choosing.

Being that Mr. Smeenk intends to raise big bucks to upscale and to reinvigorate his initiatives, that evidences his commitment to take advantage of any opportunity out there that will accelerate the process, by increasing its size and improving its economics. CEO Smeenk doesn’t strike me as the kind of fellow who would assemble all the big ROF pieces, only to paste their pictures on the wall and idly dream about them.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/cliffs-natural-resources-looking-to-exit-ontarios-ring-of-fire/article20651617/

The Koper Lake Project (aka Black Horse) is KWG’s flagship project. The geologists and experts at KWG have studied the property, from end-to-end, for years. The faster and more profitable and more robust the Koper Lake Project, the faster and more profitable and more robust will be our share of it. Mathematically, one set-of-circumstances follows the other set-of-circumstances.