This approriation move would be equivalent to nationalization of private companies. Such as what they have done in some country South America...and look at what has happened to investment from "foreign" companies. Before the government of Ontario wants to take that route there has to be some really really compelling reasons to do so. But regarless of the reasons, assuming that they are for the benefits of all Ontarians (and Canadians) there will be backlashes, since this would send the chill down the spines of exploration and mining companies. This act would guarantee us/Ontario a platimum membership in the "unfriendly mining jurisdiction" club.

That's is the broad consequence, but the details could include

- Discussion on a fair compensation to the claim holder of the N-S route. Compensation would have to cover actual accrued costs, plus loss of future earnings (e.g. rail road fees for CCC, 30% of BD for FNC, DDI?). This could be a sizable chunk, say at least 5 times the current Market Cap? Also, we have two independent valuation reports which could form a basis for discussion.

- If it's not a fair compensation, then a lengthy court case with appeals all the way to the Supreme Court will be launched. This is for sure (knowing Frank, the lawyer) and nobody, including CLF would want this to happen, since "the road project" will be tied up for years and years, and that would derail CLF chromite project including the $1.8 B smelter planned to be loacted in Sudbury.

There may be a compromised solution for the N-S corridor to accommodate the road and the RR. In other words, KWG/CCC (with FNs as partners) would be built with subsidy from Prov and Fed governments for bulk handling. The Ontario goverment (with some help from the Fed) and CLF, NOT, and others could chip in to build a N-S road, initially to transport building material and equipment to the RoF and to build the RR, but eventually this road would serve as a road link to the FN communities, and service road to the corridor (RR, power, telecom, etc...). The road is certain not suitable for convoys of monster trucks and puny passenger vehicles in the mix, considering road damages and potential accidents.

This compromise is a win-win option for everybody, but do we have enough room on the esker ridge to accommodate all that? Would 100 m wide enough?

Other options are available, CLF could propose a friendly solution to develop BD (30% FNC), or just buy off the entire company with the corridor claims included.

goldhunter