Le Penseur said "Share price manipulation (i.e. reverse split) cannot substitute for the above-mentioned substance driven process."

Fully agreed with the 7 reasons in resverse order in his post. Why on earth we want to rock this boat when the going is much better than before. Just wait for the sp to get to $0.10 and then $0.20, $0.30, etc...and a bidding war will starts. Or, the share price would just rocket when CLF decides, or is forced, to unload its RoF holdings to some entity that is more friendly and having good intention to work with KWG as a full-fledged partner. KWG has the chromite (BH and 30% BD), the claims for the only corridor up to the RoF, and the much less expensive (patentable) technology for processing chromite than the CLF electric arc furnace.

The values are in there. We have been with this company long enough waiting for it to blossom, and it is about to. It should be noted that $1.00 x 900M shares = $0.9B (or $10 x 90M assuming a 1 to 10 share consolidation would result in the same $0.9B...so why bother spending the effort to move papers around for just some perception which may not have any substance.

In my opinion, we are in a situation where we don't need to depend on institutional investors to buy "small" chunks of the stocks. It would be more likely to have some strategic partners to come knocking on the door asking KWG to form a JV of some sort. Good examples would be companies like Baosteel or Glencore/Xstrata. A JV with KWG could be formed with the major partner which would take over CLF 16% stake in KWG and 41% of BD (leaving CLF with 29%, if it wants a toehold in the RoF). So we would have the major/41%, KWG/30% and CLF/29% (the silent partner). Of course CLF could decide to unload the remaining 29% to get the money and run.

When such JV is formed the valuation of KWG will come out in the wash based on the individual components it has in the porfolio. As I see it $1B for such a fine company is not unreasonable.

In summary, the number of shares whether 900M (@ $1) or 90M (@ $10) is really irrelevant for this kind of scenario. There is no need to rock this boat - steady as she goes.

goldhunter