I think Snug and Cylinder have encaspulated the current situation very well.

I also can't find a single business reason why Cliffs would buy SPQ now. Or KWG for that matter.

Cliffs shareholders would have to question why they would waste cash or dilute shares for a company that owns less than 30% of a resource play that cliffs already owns or can own/control 70% of. Not to mention a play that is a resource that Cliffs already owns next door in Black thor. If there was a financial considerstion to mining BD first they still have several years to quantify it and buy in to it at any time. Even if the JV claims hit Nickel or another resources..... that would make little difference, as Cliffs shareholders would accept paying more LATER for a proven resource. Cliffs is not in the risk business when it comes to exploration. Shareholders want proven reserves payed for when they are needed, and can add to the bottom line. Paying now for cashflow that won't happen for many years will make institutional investors at Cliffs question managements decisions. We often forget that Cliffs has to answer to some very sophisticated owners who want to be assured of profits that can be counted in current business cycles.

I simply don't agree that another major would swoop in to buy 30% of something Cliffs is firmly in control of. It makes no sense!

unless?

Cliffs invited another major to the deal to help share startup costs and eventual benefits as a minority partner. Even then a solution like that would not entail a bidding war.

A r/s is not generally considered ideal for shareholders but I could understand why mangement would need additional tools to move this company forward and to create more shareholder value with additional investment. The great thing is that there is real, in-the-ground value in spq and that can overcome a lot of negatives.

I wish to preface my comments with the fact that I don't own any spq shares.

I do own significant shares of Cliffs through my FWR conversion and I hold a fair number of KWG, so please take my comments with a grain of salt. This is all just an opinion to solicit thoughts from some very knowledgeable posters on this board.

Best of luck to you all

kind regards..............Carry .......imo