"As we seek offtake terms for this potential new ferrochrome supply, it is crucial that such terms include a floor price which insures these large-volume operations, once begun, can continue without interruption for the many decades possible. To guarantee this we have proposed to transfer our mining claims into a limited partnership provided that Webequie and Marten Falls make an investment into the limited partnership equal to KWG's. We have offered to provide them with a non-recourse loan of $40 million to facilitate this.

"The shares of the General Partner managing the limited partnership would be equally held by KWG as to half, and Webequie and Marten Falls jointly, as to the other half. Both shareholders would appoint an equal number of Directors but the Chairman of the Board would be a KWG nominee."