"Oh ye of little faith"

50.1% is a very high figure for them to expect to come up with under the present scenario.

The way CLF is presenting this is that you have an choice of joining with KWG and getting 1.21 shares of a company valued today at .12, or you can accept .165 from them. On those terms, it would appear that their offer is superior.

However, The SPQ BOD has said they will wait until the 5 day period is up before making any further statement. They expect KWG to present them with something that they can readily say is superior, but what could that be? I can see the writing on the wall, but how many others can?

Never the less, there is nothing that says the BOD has to accept this offer from CLF, even if it remains as is. They can accept that it is a superior offer, but refuse to recommend it to the shareholders, and let it go to the vote on July 8. It is obvious to me that there is a far better chance of the JV getting the nod than a 50.1% vote in favor of CLF.

Meanwhile, back to the thought of KWG and a better offer. It is difficult to see KWG increasing the share ratio in their offer, as it will tend to be dilutive to their own shareholders. However, if they are proceeding with the valuation that was requested by CLF and then dropped, and they come up with a valuation of, say, 18 cents, we will then have an offer from them that is worth 1.21 times 18, which is about 22 cents. CLF would then have to offer 4 cents above that to regain superior offer status.

And remember, this would still only be the fourth inning.

Best regards

K