A significant item has been ignored in the discussions of the KWG / SPQ merger. It explains the KWG - SPQ exchange ratio based on each company contributing 50% of Big Daddy, once a number of items are stripped from KWG. Read this paragraph from the announcement:

Prior to the completion of the Merger, KWG will transfer its interest in the railway right of way, in its 1% net smelter returns royalty covering the Big Daddy Deposit, the Black Thor Deposit and the Black Label Deposit granted by Freewest Resources Canada Inc., and cash in an amount to be agreed upon between KWG and Spider to KWG's wholly-owned subsidiary, Debuts Diamonds Inc. ("Debuts"), in exchange for Debut's interest in various diamond exploration (OOTC:DIXFF) projects and a number of common shares of Debuts to be specified, and will distribute all of the outstanding common shares of Debuts to the shareholders of record of KWG.

Here is what the "new" KWG will not have:

- Interest in the RR right of way

- 1% NSR in Big Daddy, Black Thor, Black Label

- Some amount of cash, to be determined

Current KWG shareholders will receive distribution of the outstanding common shares of Debut Diamonds. There is no discount to KWG needed. In the end, how would you value DD shares? What is the value of the RR right of way, and the 1% NSR?

I look forward to getting DD shares!

Deke