That ratio has since been changed to 1 for 10. Here's what they had to say on their Facebook page in August, in response to a question put before them. I might add that I wouldn't be surprised to see that ratio be reduced further as time goes on. There are only 30 million shares in KWG's posession for distribution and our OS shares continues to grow.

From the KWG Facebook page

"We just met with our transfer agent yesterday to discuss the logistics of the distribution. Now have to discuss with lawyers if there would be any income tax implications (i.e. is this a dividend, return of capital, or some of both?).

Here’s some math: ...

As per the MD&A (page 1, bottom) on Debuts Diamonds dated March 23, 2009 (available on SEDAR), there will be a 1 for 10 distribution of Debuts to the shareholders of record of KWG (ex. Cliffs). In other words – if you are buying today, you would have to buy 10 KWG shares today, to get 1 share in Debuts post-distribution. 10 shares of KWG today will cost you 45 – 50 cents."

August 7 at 10:57am

SRV