Under the terms of the amended option agreement; the alternative:

"Alternatively, if one or more of the optionees incurs at least $5 million in expenditures and delivers a positive feasibility study to the two other parties on or before March 31, 2012, such optionee or optionees, as the case may be, will be deemed to have earned the aggregate 10% interest in the McFaulds joint venture property, notwithstanding that less than $15 million of expenditures were incurred prior to that date. Any decision to undertake a positive feasibility study must be made by the operator of the McFaulds joint venture project, who must notify Freewest of any such decision on or before March 31, 2011."

Those following KWG for some time now I'm sure are well aware of this amendment....just thought it might be a good reminder at this time as KWG will soon become the operator.

I also found this paragraph interesting in the next news release:

"As a result of amendments to the terms of the Freewest Option agreement that the three parties to it announced in individual news releases on Monday, September 14th 2009, the two underlying agreements between KWG and Spider have now been terminated in order to permit the parties to pursue their independent business interests."

I began looking into the corporate structure due to some comments made during my recent phone conversation with Mr Meraw. I got the impression that Canada Chrome would be the company developing the rail....as a seperate entity from KWG....although 100% owned by KWG....thereby allowing for a possible spin off of Canada Chrome in the event of a takeout of KWG....something like that.

Now...from the news releases that I have referred to above, both make the following note:

"KWG holds a 1% net smelter royalty in all three deposits and has created Canada Chrome Corporation to pursue the development of them."

It's all getting a bit complicated....where Cliffs owns 19% of KWG...and KWG has now two subsiduaries; Debut Diamonds and Canada Chrome...but somehow, Cliff's interest in KWG excludes an interest in Debut Diamonds and perhaps Canada Chrome...I'm not so sure about the Canada Chrome part

So, effectively....I think that KWG could spin off Debut Diamonds and Canada Chrome; and sell off their share of the big daddy deposit and the net smelting royalties to Cliffs

Clear as mud

P.S. I welcome discussion on the corporate structure here as my research is not complete and is based on some assumptions