1. Patent agreement with vendor - Technical: It looks like Frank is trying to get a complete patent package to use natural gas for making chromium alloys from chromium ore, and chromium iron alloys directly from concentrates. Nickel may fit in this scheme as well, but I have not dug deep enough to deliver a verdict. However, chromite or Ni are essential components for making stainless steel, and there seems to be some similarity in the stainless steel making process. Any metallurgy experts out there?

2. Patent agreement with vendor - Frank "patent" chess move, QB x Kt: If the vendor (of the provisional patent applications, whoever that may be) goes ahead with all the options, including the exercise of all wts, then the vendor would contribute $5 M to KWG treasury for an extra 50M shares (total of $100 M shares of KWG), or 100/850 = 11.7% OS of KWG.

It should be noted that CLF holding would be reduced from ~16% to ~14.2% (121/850 = 14.2), KSU had ~75M shares in 2012 (or 75/850 = 9.1%), and Frank has quite a sizable holding of potential shares with his recent acquisition of the wts. We should not forget other members of management, members of the BoD, and KWG-friendly institutional investors.

My take is that Frank is trying to dilute CLF influence by putting more shares in friendly hands (100M is a good chunk to counter CLF has ~121M shares).

In summary, the numbers above shows that the combined friendly voting power would easily negate CLF influence when it comes to a showdown. A clever move for this patent deal! The technical stuff has its own merit, but controlling of voting power is, as always, the endgame.

The general conclusion above looks reasonable, but it's always good to verify my math for the accuracy of the details. Any volunteer?

3. Mick D: Almost forgot about him. Where would you want to insert him in this chess game?

Mick could perhaps help the "patent" vendor with the $5M to exercise the wts (pocket money for Mick) for some future consideration. And he could join force with Casablanca to sort out CLF management, or even take a run at CLF (Market Cap: $2.8B, which is just about the right bite size for Mick).

As indicated from the last vote, the voting participation holds an important factor in the final results. For example, if there were only a 50% turn-out, CLF 14.2% would become 28.4% of the total votes, which is dangerously close to 1/3. Bottomline, we need to get to the polling stations and cast our (supporting) votes!

goldhunter