Barbu, you said "Holding the 15% tight and let the Operator spend the money is probably the best choice, as Frank points out in the NR". This is properly the best option for KWG, i.e. not to spend any money to increase the current minority of 15% to a higher minority of 33%. The idea is to hang on to what it has while CLF carries out it creeping TO over of the JV. In my opinion, CLF has enough chromite, but no transportation (RR) and road access to the site. So, this move is just

- increase the land holding around BD (yes, it will start with BD since BT is just a decoy...who would want to start with non-DSO, while BD and Black Creek are sitting there waiting with their DSO?); and

- to poke a hole to the east to get out of its "land-locked" position, just in case the neighbours play tough with the proposed for a breakout to the west and south according to the site plan for BT.

But, come to think out it, may be CLF is trying to use this as some threat during its negotiation with PRB anf FNC: " If you 2 don't deal, then we can re-arrange the roads to go thru the JV property"? Sounds like a chess game, or is it poker?

Suggestion to Frank: Sit tight on the 15% and behave like a spoil brat at the JV table (CLF will deal...OK, Frank says "let's talk also BD"; or drag in somebody big enough (your bodyguard?) to deal with "big CLF".

goldhunter