Hi LP:

The flow-trough financing has been annouced for DDI shares. As for CCC, one may doubt that RR works are eligible as flow-trough expenses (ie that can be passed on to the investor as tax deduction). KWG filed an advanced ruling application to the CRA and are awaitng decision on this (see the Republic of Mining July 27 article: http://www.republicofmining.com/2011/07/27/cliffs-natureal-resources-endorses-ring-of-fire-railroad-plan-by-ian-ross-northern-ontario-business-july-2011/ )

From the last July 6 NR, I see that KWG, before the distribution, will own 38,5 MM shares of DDI. (NOTE: A 2008 NR states that KWG did receive 35MM shares from the rolled-over diamond assets, but there has been some of them lost here and there since then, I guess...!)

My understanding is that there will be a $ 2.8 MM flow-trough financing for DDI, which will add 8MM more shares to the DDI float. (TOTAL: 46,5 MM shares)

I also understand that another 1.5 MM DDI shares will be issued to the Vendors of the 28 'Nakina' claims operating interest (0,6 MM more to be issued later on). (TOTAL: 48,0 MM shares).

From the last FS notes, it is stated that as of March 31st, 2011, KWG owns 96,81 % of DDI, that is to say the overall OS of Debut Diamond Inc (undiluted, though) will be more or less around 50 000 000 shares before going public. This puts a value for DDI assets at around $17MM. If there is a total float distribution, "we" should get 38 500 000 of them divided amongst the 650 000 000 KWG shares outstanding (+/- 17:1 ratio).

I may be wrong with some figures, the info is so spreaded everywhere! But sure everyone must feel free to correct me...

Regarding the price that may be attached to KWG shares after the DDI distribution, well... 30% of world-class but undevelopped ore at the mercy of a majority partner who is ready to wait 20 years to mine the stuff... And frankly, I cannot figure who else than Cliffs would bid on us. Do you really believe in a bidding war? 25 cents a piece + 17:1 DDI shares seems not so bad I guess!

Exciting times, anyways!

GLTA.

BaBe.