From what I have learned with the IR of KWG...they are ready, able and willing to spin out DD, and/or Can Chrome and/or NSR (at the most opportune time) if a bid comes in. But let's keep in mind that this would-be bid has to be friendly accompanied by a valuation of KWG, given the insider status of Cliffs in its ownership of 19.4% of KWG.

That means that most likely, a deal will be discussed between the two companies prior to any announcement or prior to the spin out of the collateral assets if that is considered desirable at that time by KWG. Renforth's Press Release is basically the culmination of an option agreement (fulfilled) which was struck in 2006-07. They have met the requirement of 6mil in expenditures and therefore own 55% of the Kyle diamond deposits.

Renforth have said that they are holding off on near term investment or developement of the Kyle, in view of the Spider take-over which definitely has some bearing on the cash influx by all partners of the Kyle in order to go forward. In essence, Cliffs' 19.4 share of DD could thoretically be diluted (in whole or in part) by a KWG/Renforth cash inlfux, which Cliffs might not want to match if they do not wish to increase their current investment into diamond exploration.

We have to keep in mind that KWG is an exploration company, not a railway/mine operator nor are they in a position to build the required infrastructure on their own. Their primary mission is to locate the goods...accurately assess the value in situe and transact with a developer or producer.

They have postured themsleves into a strong bargaining position with claims for the RR route which for all intents and purposes pre-empts any one else from locating a better route (which likely doesn't exist) and executing the engineering prelims so as to create the perception of value (SP of the corp) or leadership/bargaining postion in the ROF. Any transport capability with respect to the extracting of the ore, would be essential for any company in the ROF but moreso will proove to be an very valuable "ace in the hole" for KWG, given that they own the rights to the only way in.

This afternoon's level 2 shows us that someone is desperate to keep the SP below .12. They have put up a wall of almost 35,000 blocks of 500 shares...and the buying continues at .12...strong sign of conviction on the part of those who want to see it go to its fair value i.e. .15 to .20 range.

Best of luck to all

LP