Re: Valuation
in response to
by
posted on
Jul 11, 2010 03:04PM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
Many think that it was a scary tactic, but Cliffs said that they are no more interested in KWG, their goal of having gained control over Big Daddy being achieved. We were used to know Cliffs during the last year, and they are not the kind of bluffing player. They say, they do. Straight forward, like it or not.
From the June 25 Cliffs NR (highlighted portion is from Cliffs):
" Cliffs’ Objective
Cliffs’ strategic objective is to gain control of the Big Daddy chromite project located in the McFaulds Lake area of Northern Ontario. Cliffs currently owns a 47% interest in the project, while Spider and KWG each own 26.5% and have the option to earn-in up to 30% each through additional spending on feasibility studies to establish the project’s economic viability.
Cliffs Also Determines Not to Bid for KWG
When Cliffs announced its original intention to bid for Spider on May 24, 2010, Cliffs also said it intended to make an offer for KWG. However, after KWG entered into a binding letter agreement to merge with Spider, Cliffs cautioned that it may not proceed with a bid for KWG. Cliffs has now determined that it will not bid for KWG assuming Cliffs’ bid for Spider is successful. In addition, Cliffs may reduce its ownership position in KWG by selling shares into the market from time to time. Cliffs currently owns approximately 19.3% of the issued and outstanding KWG shares on a fully-diluted basis."