Wow. Chromite in ROF is again getting hot. First Cliff's makes offer for SPQ and KWG. Then SPQ and KWQ are looking at some type of merge to stop Cliffs.

Here is a quote from a news article on Cliffs bid.

"Cliffs plans to offer shareholders of both KWG and Spider 13 Canadian cents a share, a 62.5 percent premium over the closing share price of both companies on Friday. The offers value KWG and Spider at C$100 million ($94 million) and C$86 million, respectively."

Looks like Cliffs is essentially offering a bid of C$186 million for the remaining 53% interest in the Big Daddy chromite deposit.

Lets see, if PRB were to get a bid of C$186 million for Black Creek, then what impact would it have on PRB sp? Keep in mind PRB has only 34 million shares outstanding versus over 500 million each for SPQ and KWG.

C$186 million divided by 34 million PRB outstanding shares = approximately $C5.47. Then take 50% because Black Creek is 50/50 with NOT. Thus, a C$186 million bid for PRB's chromite would be worth around $C2.73 per share.

This is merely a ball park comparison, but doesnt look too bad. Also, keep in mind that PRB would most likely eventually sell the chromite claim only and keep the other projects going.

Appears to me that keeping chromite at center stage in ROF is certainly good for PRB. PRB is positioned well. They are smack dab in middle of Cliffs Black Thor and SPQ/KWG/Cliffs Big Daddy. Plus PRB's chromite is close to surface, high grade and I have been told is also the highest ground in the vicinity.

Should be a fun summer. Dont forget too about PRB's planned summer drill programs. Drilling planned north of eagle as well as other locations. In addition we will hopefully be getting news on outcome of LSG (West Timmins) option and possible net smelter royalty at Goldex mine.

Profitz