TORONTO (miningweekly.com) - Canadian junior KWG Resources has notified Cliffs Natural Resources that it will accept the bigger firm's offer of $0,19 a share for its small interest in Spider Resources, KWG said on Wednesday.

The company has decided to terminate its dissent against the recent amalgamation of Spider with a Cliffs subsidiary, after Cliffs bought 85% of Spider's outstanding shares.

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Spider and KWG both owned a 26,5% interest in the Big Daddy chromite project in the McFaulds Lake area of Northern Ontario, and Cliffs owned 47% of the project.

Cliffs initially indicated it planned to make takeover offers for both KWG and Spider, after which the two companies announced they had agreed on a plan to merge as a takeover defence.

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But Spider later broke off the deal with KWG and agreed to support Cliffs' C$0,19 a share, while Cliffs said it had decided not to make the offer for KWG.

Although Cliffs received acceptance from holders of 85% of the Spider shares, KWG said in July , it would retain its shares in order to dissent and demand to be paid the fair value for the shares.

The company has now decided to end the dissent because the adjudication of the fair value of the Spider shares held by the dissenting shareholders would be "a long, costly and complex process", KWG president Frank Smeenk said on Wednesday.

"Many such shareholders looked to KWG for leadership in this process. Not only could our small holding of Spider shares not justify that role, but we are satisfied - after due consideration - that it may well be in the best interests of many such shareholders, from a financial point of view, to accept the Cliffs offer before its expiry on November 19," Smeenk said.

"We did not want our actions in this process to be relied on in a way which might lead other investors to forego the liquidity made available under the offer, in preference to a judicial process where the outcome is quite uncertain and possibly far into the future."