HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Re: Venture a guess as to share take over price for Noront to buy out KWG?

The challenge in this equation is what does KWG have that NOT needs that would set a base price for KWGs value. The assumption is that consolidating is worth money, that the N-S route is worth money, the patent pending process is worth money, that they will get a significant assignment of costs from their easement dispute and that KWG can survive until its 'real value' is realized through settling the infastructure issues constraining all ROF shareholders.

Right now the market thinks KWG (all in) based on marlket cap is worth about a 1/6th of what NOT (all in) is currently worth. On a share basis the ratio of NOT:KWG shares is 1:20 to 1:25.

Everyone that owns shares sees their share being worth more than they currently trade for (same for NOT) and everyone wants $$$ cash. NOT going to happen. NOT is not going to offer cash for KWG. We don't have any and we don't have the capacity to raise it right now. So those that are expecting NOT to ''BUY' KWG probably need to rethink.

I can see advantages of consolidation through a merger and expect that the combined value of the company would be greater than the parts. That would be true for both companies. That said I don't see a merger as essential.


... Been There

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