Quite the soap opera developing here. Where do we stand now? If you're not watching every day, you might miss something. This is how I see things now...

-- the first announcement....intention to offer .13 for both KWG and SPQ put the market cap at $100 million and $86 million respectively

-- the current bid for SPQ now puts them at about $125 million

-- the independant evaluation put's KWG in a range of about .22 - .30 per share or about $200 million

-- Cliffs spent about $240 to take out FWR

-- I think there's a good chance Cliffs will take out SPQ at .19 ($125 million)

-- If Cliffs is sucessful taking out SPQ, that will put their investment to date at about $365 million (FWR and SPQ) + cost of about 20% of KWG + other possible minor investments in others in the ROF + admin costs; perhaps about $400 million give or take

-- I believe KWG is the operator for the next year with respect to the Big Daddy deposit

-- there is no guarantee that it is in fact the Big Daddy deposit that will be developed; rather Cliffs may have other strategic reasons for wanting to take control over that deposit

-- KWG does have a Net Smelt Royalty on all the chrome deposits for which Cliffs is in control of

-- KWG has rights associated with rail passage; they will have no motivation to move forward with that without some guarantees from Cliffs (say if Cliffs decides to move forward with Black Thor rather than Big Daddy); this could give KWG much needed leverage moving forward

-- KWG could decide to run a rail line in a completely different direction if terms favored such a move (say to Noronts Blackbird deposits -- wishful thinking from a Noront investor..who knows...Noront is looking to make a deal with respect to their Chrome and may give it to KWG if KWG agrees to run the rail to that area)

-- on the downside, these recent deveopments by SPQ could bring some serious short-term downward pressure to KWG shares

With respect to SPQ....it may be over for them

With respect to KWG....it aint over yet