BJ

Your post says:..."I think CLF will make a hostil buy out of KWG .Only then will things start to move .I beleive the Provincial Gov .has refused to negotiate with KWG and are waiting for this to happen .the court decision for the right of way is held up for what ,KWG to get out of the way and let the building begin Whether it be CLF or somebody looking to take over CLF."

My responses would be as follows:

- Hostile take over: Quite possible, but the price will be a determing factors. Something north of $0.30 would persuade some of us to take notice. There is one catch, unless CLF has a partner it alone given the state it's in it is doubful that CLF wants to sink more money in the RoF.

- Gov. of Ontario refused to negotiate with KWG? I have not heard about this. As I understand it KWG has established connections with the "new" government and has talked with several key ministers. Discussion may be slow (but I would not interprete that as a refusal to discuss) due to the fact that the Prov. Gov. wants to talk to a major with deep pocket to make sure that there is some potential financial commitment from a biggy.

KWG has a role to play as well from the point of view of the 30% BD, BlackHorse, and the RR, etc...So, some biggy, most likely a foreign entity, may want to keep KWG "alive" as a Canadian company to take advantage of some of the Fed money such as the 3P money...and perhaps the connections already established with the FNs and the potential RR consortium with others. At least, keep it as a subsidiary. But there is some advantage of keeping it as a public company for its ability to form partnerships and money that could potentially be raised from the market (matching funds for government grants). The 30% BD (and the 70% from CLF) looks juicy due to its high-grade which is suitable for DSO (no need for an $800M concentrator using CLF example for BT). Now, the biggy may want to discuss with the Prov. Gov. on a subsidized power rates... and the Prov. wants a commitment for a smelter (in Sudbury?). This is simply big stake horse trading in the big scheme of things.

- I would agree that mostly likely it won't be CLF that will be the operator. It may have some small stake, but the deep pocket will take over (both KWG and probably CLF as well). As I see it, CLF's Fe (a very nice chunk in Quebec and Labrador) goes well with chromite for people who want stainless steel.

goldhunter