This was posted on Stockhouse - good thoughts here:

johnale1

6/27/2011 10:28:59 PM

Very interesting.. I believe that spider is the operator, and if they do not spend the 2.5 mil, they have the option of paying freewest (ie cliffs, ie themselves) the extra money to earn in the 30%, just like KWG this past year.
So, I think its unlikely KWG will be able to up their interest in big daddy, but good thought none the less.

Im surprised that Cliffs has yet to define a plan for Big Daddy this year, to earn in....

Remember 2 months ago when we were all arguing about road vs rail... majority agreed that rail was the way to go, and that cliffs was just posturing? Well, post conference we got our answer, and we were right.

Remember now how we all agree that Big Daddy is the best to mine first because it will be the most profitable, and the best way to recover your capex is to mine the best return on investment...I think most would agree, but Cliffs would like us to believe otherwise.. are they just posturing... I think so.

At some point, just like with the railroad, Cliffs will have to let the cat out of the bag on what they really want to do. Mining big daddy first is the last piece of info that is keeping kwg from 30+ cents .

IMO I don't think Cliffs will keep KWG as a partner. Likely will buy us out by offering Cliffs shares.
My target, like others have mentioned, is before April1, 2012 when the option agreement ends.
9 months till then, I think within 6 months they take us out.
The longer the share price is low, the more likely a hostile bid post valuation will commence.