In an attempt to thwart a hostile bid from Cliffs Natural Resources of Cleveland, OH, Toronto-based Spider Resources and KWG Resources of Montreal have signed a definitive business combination agreement. At the conclusion the shareholders of each company will hold 50% of the outstanding shares of the ongoing public corporation, under the name “KWG Resources.”
The new company will control a 53% interest in the Big Daddy chromite deposit in Ontario’s Ring of Fire and continue to be the operator. It will also have the option to increase its interest to 60%. The balance of the project is owned by Cliffs by virtue of its takeover earlier this year of Freewest Resources. Cliffs has made overtures to both KWG and Spider for a takeover that would give Cliffs control of the Big Daddy resources.
See www.KWGResources.com or www.SpiderResources.ca.