IMHO there are serious suitors out there who would want to buy KWG, if only for the future netbacks, even if they come 20 years from now...and the are willing to wait, given that they are or may be gov owned or sponsored. The longer Cliffs plays this shell game, the greater the risk of permanently losing 30% of BD. And even if Cliffs does move towards a TO of KWG...with a valuation or in response to a hostile bid from an outsider, does anyone believe that Xstrata will stand idle while its share of the North American Chromite industry, gets taken out from under their nose, by a new chromite player...one who's stock has fallen so much that it is now a TO target itself...Hmmm! Let's remember the Xstrata merger, a year ago with Glencore, a company who just completed their own IPO raising 11 billion and is about to further issue another 2.7 billion shares bringing its free float to 57% of total shares.

Additionally, it has always been KWG's position, that ultimately when the time comes, it will be the RR against the development of BD first, which will be on the table; there are a number of legal ramifications and significant liabilities for both Cliffs and the Ont Gov, if the easement were to be granted. Yes the fed or ont gov have the ultimate right to expropriate, for the greater good of Can or Ont, but not for the greater good of one company over another especially when it seemingly contradicts the federal partnership act. I think the compensation for RR land claims and work already achieved will be part and parcel of the whole development deal.

In my original post, I did not say that a take-over by Cliffs was imminent...I made the point that the valuation of KWG should be viewed as being higher than the numbers that were being discussed. Personally, I think that Cliffs are merely portraying, what seems to be a ligitimate attempt at the easement to buy time, when what they really want is for the Govs to pay for the RR on the North South corridor and provide hydro infrastructure. Once that is locked in, I believe that Cliffs will no longer need to stall and will try to repair the damage to their Market Cap, by announcing a number of politically correct and significant advancements in the overall project including but not limited to a TO of KWG. They might try to keep Frank and his team on board, to maintain the good relationship with FNs, but it might be too late by then, given the additional time that the bigger fish were inadvertently allocated to prepare their own moves.

They (Cliffs) will probably conceal any intention of developping BD (along with the recent metallurgical and drilling results) until the last possible moment so as to maintain the perceived low valuation of KWG...but ultimately, both deposits will be mined concurrently ...one for processing/smelting and the other for direct shipping; for this reason, Cliffs cannot afford to lose 30% of the direct shipments out of BD....they are literally PLaying with "the Ring of Fire" haha! sorry...couldn't help it.

Good luck to all KWG longs,

Le Penseur