Canadian Mining Journal

News

CHROMITE FIGHT: Ownership of Big Daddy at centre of tug-of-war

ONTARIO - When the initial 43-101 report in May 2010 put the chromite grade for the Big Daddy deposit in the R...



ONTARIO – When the initial 43-101 report in May 2010 put the chromite grade for the Big Daddy deposit in the Ring of Fire at near 40%, the news sparked a fight for majority interest in the property. First up was Cliffs Natural Resources of Cleveland, that said it would buy out either of the other two partners, KWG Resources and . KWG and Spider each hold a 26.5% interest in the Big Daddy property. The remaining 47% belongs to Cliffs.

Cliffs offered C$0.13 in cash for each common share of either KWG or Spider. Total value of the transaction would be C$186 million.Spider Resources

In response, KWG and Spider entered into a binding letter of agreement for a merger of the two companies. Following a share swap, business would be conducted under the KWG Resources name. Their combined 53% interest in the Big Daddy deposit could be increased to 60% under terms of an earlier option agreement.

Further developments will be found on www.KWGResources.com, www.SpiderResources.com and www.CliffsNaturalResources.com.