ElmiraF

Currently CLF through FWR and SPQ combined will hold the majority, assuming both KWG and SPQ exercise their ROFR. The end result would be something like KWG with 15% +5/3 = 33.33%; and CLF with (SPQ 30% + FWR 55 x2/3) = 66.66% of the JV.

If Baosteel (not Boa) wants to get in, it would go through either NOT, or directly through KWG. But, it would not get the majority of this JV parcel given the current situation, as discussed above.

Chinese companies generally do not want spotlights on their investment activities, and would prefer to fly under the radar. Also, as a Chinese company, Baosteel would not want to get involved with the day-to-day operations of a mine (too much headache). It would fit their strategy better just to have some sizable stake in a Candian company. I believe all it wants is to secure a good supply of raw materials for its steel mills in China.

One intersting scenario would be for Baosteel to get a good chunk of KWG (for the RR and the 30% of BD). May be it wants to have a JV with CLF to develop BD? On the other hand, CLF may want to start a bidding war for KWG. A 100% Canadian subsidiary as the Canadian connection for the government contribution to build the RR would be fine for CLF. Our block of share (currently our share count is at 8%) could hold some kind of balance...for some reasonable price?

Just my speculation.

goldhunter