Massive Black Horse Chromite Discovery
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
Message: Cliffs CEO Goncalves yipping again,but KWG expecting deal by Christmas
We all know Cliffs is trying to sell, and KWG is eager to buy. Why doesn't the province of Ontario help out?
From the interview: As for Cliffs, Mr. Goncalves confirmed he has had discussions with KWG Resources but expressed doubt that the company can find the financing for a deal.
“We were in talks. But the problem is not talks. We talked. And we have been talking. But they don’t have the most important part of the thing. They don’t have money,” he said. “I’ll be happy to sell to KWG or to any other player that has one thing that I need. And that thing is money.”
But it's probably very hard (maybe alomst impossible) for KWG to secure financing to buy Cliffs RoF project at this stage. IMO the reason is the lack of an overall plan for the RoF.
In that context, I suppose Cliffs is creating a negative sentiment which is making it harder for everyone to believe in progress in the RoF.
To me it seems like the Provincial Government is holding the initiative. They have to break the deadlock primarily with the FN about the overall development of the area, and secondly with the Federal Government over funding.
If the focus of the Provincial Government is on jobs and tax revenue, the master plan should focus on creating a stainless steel sector in Ontario.
From an article on the FNC forum: "Quebec has also outlined a C$1 billion natural resource fund to buy equity stakes in mining, oil and gas assets. Half of that fund is earmarked for Plan Nord projects."
Both provincial governments are Liberal, so would it be inconcieveable for the province of Ontario to do the same, and partner with KWG (and maybe NOT) to buy out Cliffs??
A direct and active investment by the province would signal a strong commitment, solve the KWG vs. Cliffs transport issue, show initiative towards creating jobs and revenue, and keep foreign majors and the Chinese out who just want to ship the ore out of Canada. Just to mention af few of the advantages.
There might be an obvious reason why it is not done, but as a foreign retail investor I´m not aware of it. I would like to note that i'm not generally for direct state ownership of businesses, but I see this as birth help for developing a strategic asset for Ontario, and that would make the difference for me.
Regards DRA
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