BarbuB,

One way not to add more shares to KWG OS(currently @ 777M, actually it has shrunk, at least it has not grown) is for the deep-pocket backer to buy up 70%BD and BT and form a JV with KWG to develop BD and perhap BC (first with BT put in reserve). The deep pocket may need to take care of BC as well (or David Palmer may be willing to be part of the JV, taking cash or shares plus NSR). These 2 deposits are the best in the area and should be mine first. CLF has done quite a bit of work on the mine plan for BT, but the deposits could be switched with some simple modification of the plan. In effect, the potential chromite project (BT, or the other 2 combined) is in an advance state and it should not take much time for KWG to complete the rest of the requirements.

KWG can acquire the ~14% from CLF, so it would not be under the thumb of anyone. Or alternatively, if the deep pocket is friendly enough the it may have that 14% as a majority shareholder, as long as it would promise not to interfere with KWG decision (they can have an agreement to vote the 14% with KWG management).

It would be advantageous for a foreign company (I am assuming that the deep-pocket is non-Canadian) to use KWG as a front so that it can avoid

- complications with the government, as far as ownship is concerned;

- keeping KWG whole, would avoid the easement fallout. It would be much simpler to have KWG as a sole entity with the rights for that corridor (which could be used for road, RR, transmission powerline, slurry pipeline, natural gas line,...)

- Come to think about it, it may be more advantageous to build the gas furnace around Nakina and put more emphasis on the slurry pipeline instead. The slurry pipeline would ease the pressure of the RR, if the government is still dawdling on the transportation issues.

- The gas furnace should be much cheaper to build (much less than $1.8B) and to operate (gas versus electricity). In addition, a saving of $0.8B spending on the on-site upgrader may not be required for the deposit grades at BD and BC. If it's decided not to build the NS transportation route then that would save an extra $0.6B (CLF was planning to spend this amound with a match fund from the former premier).

Bottomline, there is a potential for some creative math, if there is a will to proceed from the political front. A few $B is not a big deal for some deep pockets.

Bet that Frank has been and is playing around with various scenarios/options/ideas.

Feel free to speculate and have your own recipe for this cake.

PS: BB, that was the reason for mentioning Sir Richard at the end of your message?

goldhunter