Cliff buying FWR

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Francis Dube

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Cliff buying FWR

posted on Oct 12, 2009 05:48PM

For the record, I do not believe Cliffs will make an offer but someone is saying this will happen. If Cliff's makes an offer and buys out FWR shares we will get money for those shares or Cliff shares. Either options will not have the upside of a NOT/FWR merged company. If we get cash for FWR shares at this point, we may see $1.00, maybe $1.50 max but I honestly cannot see them paying more cash at this point then this. This cash will be sitting idle for a long time before producing any revenue and their current cash position is not that great after spending 80M in cash.

To maximize our ROI in both companies, we need those assets reunited under one roof and then we become a very attractive take out target. If Cliffs does make an offer those assets will be divided and I believe this is not a good thing as development of a mine in the RoF will be more difficult/risky and a longer process to accomplish.

So I do fear for a purchase by Cliff but not because I think they will do it but for those reasons I just mentionned. I hope this makes sense.