"SPQ has been a take out target from the day it found the BD deposit. Any idea that CLF would leave any portion of a multibillion dollar deposit in the hands of a jr like SPQ is really funny. CLF will buy SPQ before production starts on the BD deposit. Letting a jr have 30% of 1.5 Billion (approx.) gross sales a year makes me question the logic of anyone who would present an idea like this."

Absolutely right on all counts.

I anticipate they are presently contemplating their next move. If the transportation needs are being determined through Canada chrome/KWG, the next step will likely be doing some sort of feasibility study. Reasonable costs for a full blown study in this area would be somewhere north of 50mill, with 30mill required in the first 12 months. CLF will be able to fund this out of cash flow, KWG has the funds in hand, and SPQ will have to somehow raise their share. If they cannot raise the needed funds they will be reduced to a 2% net smelter return. Neil understands this, and knows that when CLF comes calling, if he has some ammunition such as the R/S option as a way towards raising capital, he then has the ability to negotiate a better deal for all. He doesn't have to do the split, just have the option when he sits down at the table, which they are probably doing as we speak. As it stands he is basically against a wall.

THat CLF is going to develop this area, there is no doubt.

That CLF will take SPQ out before this, there is no doubt.

That CLF will pay one dollar more than absolutely necessary, there is no way. Why would they?

Enough said. The R/S issue is dead, and further discussion on it is pointless.

Best regards

K