Goodheart,

According to your messages CLF was looking for a partner, presumably to help with the expenditure and share the risk. For this, CLF would not have to look too far, since Baosteel is just around the corner.Of course, let's not discount other biggies.

I can see that KWG would be looking to sell its 30% BD to get some nice chunk of cash and run. Or, it can do a JV (for it's 30%) with a biggy. There is one potential candidate around the corner (Baosteel?). But why stop at the JV for the 30% BD. This leads to the third option below.

The third option is to try to entice some biggy to buy up CLF 70%BD (since CLF appears to be in favour of BT). It is certainly not KWG's job to go out of its way to sell BT for CLF, but it's plausible, since this would be beneficial to KWG 30% BD as well. Or, to bring in a JV partner to develop 100% BD and to share the cost of building the RR, and the common mine development costs with CLF (including smelter? even though BD would produce DSO which can be shipped directly to offshore customers). This JV partner could send the DSO stuff to CLF smelter for making value-added products, just to please Ontario (jobs for the people and taxes for the government along with political brownie points for the Premier.

Frank could end up with a very busy summer doing some pro bono work for CLF, but this is no charity. He would get sastifaction and some cool $$$$$ for his effort.

goldhunter