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Message: Re: Rails to the Ring of Fire
12
May 30, 2011 03:01PM
4
Jun 04, 2011 01:02PM

"If the railway option is the final choice...and KWG controls the route...what does it mean for KWG shareholders? ..ie what ball park are we talking about in terms of shareholder value.. increase in market cap whatever? I realize this would be a guess but just curious about opinions on this?"

The McCormack valutation (June 2010) applied a 25-40 MM$ value for the Railway Rights of way "based on on 10% of the potential cost savings from the contemplated route versus an alternative route".

I guess that this value may increase with time, especially if there is a close announcement that the railway will be built ASAP on the KWG's staked corridor... Construction costs have been aprraised to near 2BB$. Not for kid's play! KWG needs support and backing, plus creativity.

From the NOB June article:

"Having First Nations as partners in the power generation and part-owners in a proposed Ring of Fire railway is a “very eloquent solution” that should resonate with the First Nations and Ottawa.

How it unfolds with the funding formula remains to be seen, but the infrastructure could be financed through flow-through shares."

What is needed, and fast, for that direction to be followed is a solid and focused (and cooperative!) leadership from the First Nations. I remember that the Northern Quebec FN had a strong leadership as regards to the James Bay Hydro development in the 70s', I was a student worker then in the North and did not follow politics seriously at the time, but I recall that the Cree community and others created several commercial corporations and started to buy airways companies and invested largely in exploration and northern development entities so that they could benefit from all the action up there... KWG is maybe trying to ignitiate that kind of will in the natives' minds... "Hey, guys you have rivers and lands and good people, you can be proactive and position yourselves in a leading way. Join us and let's gain from the coming storm ! But do it fast, before the rain start to fall! "

GLTA.

BaBe.

(A Note: 'flow-trough shares' for a railway/power development??? Will we see a newborn Plan in the next Budget, kind of a Northern Development Investment Plan, in which an investor is allowed a FT-type deduction when he purchase shares is an 'eligible corporation', like the one FN would put in place for the power/transportation construction! Let's just brainstorm, which is just what Moe Lavigne is trying to induce in floating his last balloon...)

2
Jun 07, 2011 01:10AM
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