Deputy,

First, I am also a shareholder of both, so I am not trying to take advantage of either company. Just looking for some way to unlock the value of FNC through some potential synergy, since there are big bucks involved at the RoF. If the new PM decides to do something about the North by supporting the NS corridor (both RR and road would be the best and most logical). We can sort out who is paying for what and how much later. There are many parties involved and 80% (choose another number if you wish) of the activities would be politics anyway. The money bit is trivial in the big scheme of things.

The RR would cost something like $2B? and CLF in its plan the following budget of $0.6B for the road (expecting government/others to pay for the rest of the hauling road option, i.e. exclusively for monster trucks). Another $0.8B is for the on-site upgrader to bring Black Thor ore to DSO standard for a total of $1.4B (note that billions is used so far) . The carrot is the smelter to be built near Sudbury at $1.8B. Total cost for CLF Black Thor = $3.2B = big bucks, but the profits are also huge.

The number of shares (KWG +FNC) should not be a concern, since we are in the penny stock zone. So, whether it's 0.7B shares or 1.0B should not make too much differences and it would be expected for the SP of the NewCo to drop much below say $0.05/s (the current level of KWG).

For the sake of speculation, let's say FNC shareholders would accept a 60% premium for merging with KWG then KWG would offer 1 FNC for 3.7 shares of KWG (Total share issued = 118 (current FNC shares) x 3.7 = 440M KWG shares. Total shares for NewCo = 0.67 + 0.44 = 1.111 B shares. But, the value of NewCo would still be the same noting that FNC has been given a premium of 60% (9Ms of RGX + 17%CHM + some cash/current Mkt Cap of $13.6M, andKWG Mkt Cap is $33.36M). The combined market value would still be around $47M, plus other holdings such as the RR value, Magpie, Lamelee, etc...

The difference would be

- KWG/NewCo won the right to build the RR, and or

- NewCo under new management (Franky at the wheel) would be able to unlock the value of FNC Fe/Ti and chromite, nickel, PMG... assets.

IMO, FNC shareholders would have nothing to lose. Feel free to poke holes in the above and share your view.

Note: I was doing some DD on the KWG/BOL JV on the chromite on FNC claims, but could not find much info on the previous drilling results (in C-1 to C-6) from FNC website. It looks like the company does not want to communicate or to pay much attention to IR.

goldhunter