RJ – I have reviewed the drilling results and quality tests and clearly understand the relative worth of Thor versus Daddy. If you or I owned the deposits, we both know which one we would mine first. And I think that mining Thor and Daddy concurrently may be a real possibility.

However – I ask you to think about this strategically from Cliffs perspective; they own 100% of Thor and have a pesky and feisty partner in the Big Daddy that they do not want to take over for a fair price that is reflective of the valuation (original from 2 years ago or updated).

Cliffs have made permit applications to mine Thor. Nothing has been submitted for Daddy – and they are the operator and therefore in control. Cliffs also have plans to build a concentrator on-site for the more inferior grade of Thor - so theoretically they can process and direct ship at the same time from Thor.

As well, they paid a solid price (did it not end up being around or just over $1 per share?) for Freewest thanks to a bidding war with Noront. Granted the shareholders of Spider were absolutely mugged by Cliffs and Neil (I was one of them that was forced to reluctantly swallow 19 cents...still have that bad taste in my mouth) resulting in a mitigated average price, so Cliffs will do all they can to keep KWG shriveling on the vine and delaying Daddy, trying to work a deal with the Ontario government with KWG in the dark, scoring an easement, etc.

As always and repeatedly stated on this site and others - everyone do your own due diligence and make your own informed decision on buying, holding or selling. That said and for the purposes of clarity, I am in no way portraying KWG as a bad play or that KWG is on the ropes. I hold shares in KWG and have done so for some time and I have no plans to sell in the short term. Like RJ, I feel that this is eventually going to appreciate in value. I just don’t see it happening in the form of a takeover from Cliffs in the short term as for the reasons stated above, it does not make sense from a strategic standpoint.

Going long on KWG,

Keep Digging