Keep Digging

- Thanks...your 1.15M s plus 0.1M wts are noted.

- As indicated, the original purpose of the share count is just to gauge the power of the small shareholders as a block, 10% is reasonable number to aim for, since this hsppens to be the threshold for compulsory rendering in a TO. We have achieved that goal assuming the support of management (2%, which is a small percentage without their opts and wts exercised, FD). If the OS shares were used then we have achieved the 10% level by ourselves (i.e. w/o management support). It should be noted that we are not doing this "to stick it" to anybody, but it would be nice to know our strength if we act together. So, our block is there to support management if needed, and would serve as a deterrent and a force to be reckoned with in a forced TO. Or, to put it in another way: to "encourage" negotiation in a business-like manner and to get us a fair price for our investment.

In the end, I believe that CLF would walk KWG down the aisle and put her on a pedestal as a Canadian subsidiary for doing all the chores with respect to Ontario, the Fed, the FNs, etc. The cost of the RR is about $2B, but with contribution from the governments, and others, this sum is not really a big sum (considering only the $35B infrastructure fund McGuinty planned for the next 3 years). CLF alread slated $600M for the road, to be cost-shared of course. This amount is small compared to the costs of the near-mine concentrator ($800M) and the smelter (a whopping $1.8B).

So, in the big scheme of things it would be worth while to propose to this KWG young lady for her influential connections. It sounds cold and calculated, but to scoop her up CLF only need to pay 100%-17.4% = 82.6% (or about 550M shares). At $1.00/s this only costs CLF about $550M. Cheap for all the Canadian connections, good housekeeping and good cooking who will direct all the cooking to get the RR built...and more!

One advice for CLF: Don't dawdle for too long, some other dude may come along and sweep KWG off her feet. BTW, her dowery of 30%BD is not shabby either. It's worth bilions.

goldhunter