Hoov, just a few points I would like to discuss with you to tap in your fountain of wisdom.

- UC/SPQ/FWR/KWG JV: We know that FWR = CLF, diito for SPQ. UC is selling it's 55% to CLF via FWR for $6M. The left over is 45% devided equally to SPQ (22.5%) and KWG (22.5%). There is some discussion on SH...saying that KWG has only 15% and SPQ 30%. Which number is correct for KWG (22.5% or 15%)?

- KWG has the ROFR, so if it wants to it can exercise that right to get the 55% from UC . The consequence of that is that KWG will have to carry the maintenance (of claims) and nay operating costs which may be prohibitive. What about SPQ, can it excercise its own ROFR at the same time? If so, what then, 50-50 split of the 55%?

- The above is just the math for the details, but in terms of strategic move, I would say it would be of strategically advantage to retain as much as possible of the JV. The minimum is 22.5% (for the sake of argument)...plus half of 55% (22.5%) would give KWG 45% which is a minority stake compared to 55% total for CLF. If KWG got the whole 55% then it would have 77.5% with SPQ (CLF) 22.5%.

- Box CLF in: My favourite topic, I am looking at the claim maps (as of Oct 2008, not sure about the current situation) and it shows the UC/et al/ JV on the west side of McFault's Lake (gray on map). Next is a layer of NOT claims (brown on map). I don't know if this JV would include alerger part north of the lake in which there are quite a few red stars (deposits) which KWG calls the Cu-Zn massive sulphite deposits ( gray on map). Next, as we move West there are of string of claims that belongs to PRB (yellow on the map). Going west a bit more we see a bunch of NOT claims with a big block siting just north of Black Thor site. In general term, CLF is boxed in (with several layers) on all sides. The best escape route would be through JV with KWG which contains BD. Buying up the UC 55% portion (and next is the 22.5% of KWG) would take down one layer of blockage on the East side, so that it can punch a hole for some access roads (to the RR in the South) if things are getting nasty in CLF negotiations with PRB, FNC and of course KWG. This sounds like war, but it is.

Suggestion for KWG: If it can afford the carrying cost for a year or so, perhaps it would be a good strategy to exercise the ROFR to get the majority stake of this bit of real estate...just to frustrate CLF. Join force with NOT to share the cost, if required. This is an "in-your-face strategy", but the frustration may be just too much for CLF to have a quick TO of KWG at ALL cost, just to get rid of the thorn on its side.

What do you think? (anyone else want to wade in this mud?)

goldhunter