Still trying to understand the reason for Loeb King (Lk) fund to come out with liquidation letter to its clients resulting in the sell-off of KWG shares which prompted KWG to issue the NR below...and also the implication to KWG as a company.

KWG NR says: "TORONTO, ONTARIO--(Marketwired - Jan. 16, 2015) - KWG Resources Inc. (TSX VENTURE:KWG)(FRANKFURT:KW6), reports that Loeb King Capital Management advised its clients in a letter dated January 13, 2015 that "the funds will begin an orderly liquidation". According to a Bloomberg News report issued yesterday Loeb King Capital Management, an investment firm with about $1 billion, is closing after principal Gideon King decided to manage his own money. Loeb Capital Management LLP previously advised KWG management that it held approximately 49 million of KWG's issued and outstanding shares and yesterday advised that 8 million of those had been sold on the TSX Venture market this week."

1. Implication: As far as I can see, the drop in the share price has nothing to do with KWG performance. It was/is a liquidation of one of LK holdings. It's a $1B fund, hence 49M shares of KWG @ 0.025 is just a small drop in the bucket (~1M/1B = 0.1%).

2. Presumably, King took the time to inform other companies as well about his plan, just like he did with KWG. Question was did he also dump those shares in the market, like what he did to KWG shares. Anyone has any idea if other companies would suffer the same kind of drop?

Also, noticed that the fund value itself has dropped about 2% (see Bloomberg) after the liquidation announcement. Presumbaly, some/most liquidation, at least some major holdings, have been liquidated before the letter to clients was issued, since it would be inconceivable for a seasoned fund manager like King not to do so. Bet that, some clients already had some inkling about what was going on, and perhaps have begun withdrawing their investment from the fund. Following the letter, there would be more withdrawal, assuming that the fund has enough cash for the withdrawals. If not, then the fund would be in trouble.

3. Why didn't arrange some private transaction rather than dumpring a large chunk of shares in the market to depress the SP? This does not help future price of the SP if they still have a large chunk to liquidate (they have sold 8M + ~2M shares) in the open market. So, why try to depress the SP...creating an advantage for whom?

On a positive spin, as Frank said in his NR, retail can take advantage of the price LK is prepared to accept (min 0.025/s?). In term of $ figure, 49M share would get LK ~$1M, chump change. But if the goal is to get the entire company's total 777M shares (hint: that is KWG OS) then the loss in selling this 49M shares would be nothing...just like the sacrifice of a pawn for a king.

4. Since the left over is about 39M shares, perhaps 39 of us could get together and buy 1M shares each, at the cost of 1M x $0.025 = $25k (manageable?). Or if we are good bargain hunters then we could bargain it down to $0.02 for the whole lot, at $20k each.

If I won a lotto jackpot tonight I would buy the whole lot myself,...and perhaps CLF 111M shares as well to to make life simple for KWG, lol!

In summary, this game would appear complicated, but everything boil down to governments actions. Once there is a greenlight showing their willingness to proceed with the infrastructure everything else will fall in place. It looks like we are waiting for a (late) Spring election, say just after April when the Fed budget is available to launch the campaign. Bet that the Fed would want to show the people of Ontario, especially Northern Ontario, that the central government wants jobs, jobs, and jobs for them. BTW, Minister Rickford has a vested interest to protect his seat in the sea of NDPers and one Green. Also, Minister Oliver must do the same to protect his own.

What would be better than the RoF project that has a national significance to create wealth employment for Canadians, during the current oil price crisis with our dearest neighbour dragging feet on the NS pipeline, and the job loss from the closing of Target and Sony stores?

goldhunter