The news says particularly the underlined): "...KWG Resources Inc. has been served with a Notice of Appeal on behalf of the Cliffs Natural Resources Inc. subsidiary ("Cliffs") that recently lost its application to the Mining and Lands Commission."

Question: Presumably, an appeal to the decision of the Lands Commisioner (dismissal of CLF easement application) has been filed with the appropriate court with higher authority.
Serving "Notice of Appeal" to KWG is a mere courtesy, and has no legal implication?

Also presumably, CLF would need to "serve" the Commisioner for its appeal action.

Comments:

- Even if CLF has gone through the court system to launch an Appeal, my take is that this has no consequence on KWG, since it has the legal rights (as confirmed by the Commissioner) to carry out mining related activities on its claims. It can bring in new (major) partner, talk and make deals with the Fed and Prov, etc...

- CLF Appeal would be used as a tool in its negotiation with KWG, since the Appeal could be withdrawn anytime in consideration for KWG "consideration".

- But, KWG will be "forced" to prepare for the Appeal and will need to spend money and time (=money). It would be expected that the expenditure would be reimbursed by CLF, especially if CLF lost the Appeal.

- Since the Appeal is handled by a different Authority, and may take some time for the court to agree to hear the Appeal, and much more time for the Appeal to be decided, it would be fair (my common sense) for the expenditure (the ~$1M jackpot) to be submitted to the Commissioner for a decision now.

KWG can (probably, since I am no lawyer) make a case to the same Appeal Authority for this (partial) refund, since CLF is a much bigger entity which has the ability/resource to deplete KWG treasury, in a prolonged court case. This is in view of the fact that the Lands Commission has spoken, based on the law of the lands, and this part of the case has been wrapped up. KWG has spent its money and CLF would need to reimbursed the amount. The Appeal is a brand new ball game.

During the meantime CLF's ~$0.5B investment in the acquisition of the properties (FWR and SPQ, etc...) and preparation for a chromite related facilities by CLF becomes dead money for a long period of time. Trying to explain its future plan for the RoF and this $0.5B dead money (considering its Mkt Cap of $3B, and the development of the RoF would cost it $3.3B) to its shareholders, would be a diffficult task for any CEO.

Also,... during the meantime, other majors would emerge and snatch the development opportunity from CLF.

goldhunter